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High Interest Rates Aren't Slowing the A.I. Boom
Original: High Interest Rates Aren’t Slowing the A.I. Boom. That’s a Problem for the Fed.
The New York Times reports that A.I. investment continues to surge despite the Federal Reserve keeping interest rates high, defying the usual pattern of rate hikes cooling capital spending. The paper argues this creates a policy headache for the Fed, since its main tool for slowing the economy appears ineffective against A.I.-driven spending, complicating efforts to bring inflation down.
Why now: Fresh analysis of a policy dilemma for the Fed as A.I. spending resists high rates.
Federal ReserveThe New York TimesA.I. industry
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- High Interest Rates Aren’t Slowing the A.I. Boom. That’s a Problem for the Fed. · The New York Times
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