According to WuTalk, the minutes from the Federal Reserve's July meeting reveal that participants generally believe inflation remains above the 2% target, with risks skewed to the upside. Factors like the Middle East conflict, tariffs, and demand pressures from AI investments may make inflation more persistent. The labor market remains stable overall, and economic activity continues to expand robustly, primarily driven by AI-related investments and consumer spending. Most participants support maintaining the current federal funds rate target range, but several advocated for a 25 basis point hike, citing widespread price pressures. Many participants noted that if inflation fails to decline further, tighter monetary policy might be necessary. Some believe current financial conditions may still be insufficient to bring inflation back to 2%. The minutes also highlight that the rapid expansion of AI infrastructure, coupled with high valuations and leveraged financing, has increased financial stability risks. If the market revises down its long-term profitability expectations for the AI sector, it could trigger widespread asset price revaluation and tighten financial conditions. https://(wublock123.com)/news/news-66836