Fed officials say boost from AI could raise neutral rateBloombergSome US Federal Reserve officials have begun suggesting in recent days that productivity growth from artificial intelligence (AI) could mean higher interest rates, a view that would put them at odds with US President Donald Trump’s administration and its nominee to lead the US central bank. “Demand for capital would rise because of the strong business investment required to take advantage of the technology, putting upward pressures on interest rates,” he said. Several Fed officials see that as close to neutral for the economy, and have cited that as a reason to slow or stop rate cuts. “Maybe it raises the neutral rate a little bit,” she said. “We need to be a little humble about what we think the impact on the neutral rate will be.”

Source: Taipei Times February 18, 2026 17:16 UTC