BMO Economist: AI Stock Decline Helps Fed Reduce Inflation

Techub News reports that BMO senior economist Jennifer Lee stated that the decline in AI stocks leading to cooled investment in data centers may help the Federal Reserve reduce inflation. She pointed out that hyperscale cloud providers have raised large amounts of financing to build data centers, driving up interest rates and exacerbating inflation; if AI investment slows down, it will ease the Federal Reserve's pressure to fight inflation. Regarding the crypto market, the AI sell-off suppresses crypto assets through risk appetite reduction on one hand; if interest rates decline, Bitcoin and Ethereum's attractiveness relatively increases. (BeInCrypto)