Will the AI buildout be inflationary or disinflationary?

19th February 2026

The evidence so far shows that the inflationary effects of stronger demand from the AI buildout remain narrow, whereas the disinflationary effects of stronger productivity growth already appear to be broadening. Accordingly, unlike the experience during the tail end of the dotcom boom, the risk that the latest tech boom will eventually force the Fed to tighten policy aggressively seems more limited.

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