Woofun AI reports that Federal Reserve minutes from the July meeting, released on August 21, recorded 18 mentions of artificial intelligence across 15 paragraphs on economic conditions. Policymakers warned that substantial investment in AI infrastructure could increase aggregate demand and exert upward pressure on overall inflation. While some officials viewed current price pressures as limited to chips and software, others indicated that broader price effects might already be emerging.

Officials expressed concern over the growing reliance on debt financing from non-bank investors and regional banks for AI capital expenditures. A sharp reversal in AI asset pricing could trigger significant stock repricing, impacting financial institutions and consumer spending. The minutes also highlighted uncertainty regarding AI's impact on the labor market, noting that data center construction creates jobs but exacerbates shortages in skilled trades.

Furthermore, doubts remain about when promised productivity gains will materialize.