BREAKING
Fed's Jefferson: AI May Lift Inflation First
AI Hits the Economy Through Two Channels
1
Demand surge
↓
2
Supply gains
↓
3
Timing decides
Which Effect Arrives First?
Demand first
Inflation
●
Data-center building
●
Capex and spending
●
Upward price pressure
Supply first
Disinflation
●
Higher productivity
●
Lower unit labor costs
●
Prices ease
A Framework, Not a Forecast
Fed Watching the Sequencing Closely
Stanford Speech, July 16, 2026
AI NEWS BLITZ
Fed Vice Chair Philip Jefferson warns the AI boom could raise inflation before it lowers costs.