There's a New Source of Inflation, and It's Put Fed Chair Kevin Warsh and the FOMC Between a Rock and a Hard Place

Fed Chair Kevin Warsh and the FOMC face a dilemma as AI infrastructure build-out emerges as a new inflation driver. While AI demand has boosted the stock market, supply shortages for GPUs and semiconductors have given hardware companies exceptional pricing power, raising consumer costs for tech devices. The Fed must choose between leaving rates unchanged (risking continued inflation) or raising rates aggressively (potentially halting the AI boom and crashing the stock market).