Fed's Inflation Puzzle: AI Hardware and Tariffs Push Prices Higher

The Federal Reserve's fight against inflation just got more complicated. A new Minneapolis Fed analysis reveals that the AI hardware boom is contributing to core inflation just as much as President Trump's tariffs—roughly 0.4 percentage points each—as the central bank weighs a potential rate hike in September.

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• Technology Hardware: AI-driven demand has sent prices for video and information processing equipment up 12.2% year-over-year through July, a...