Kansas City Fed’s Schmid Says AI Is a Top Driver of Inflation

Framing AI as an inflation driver reframes the technology as a macro variable rather than a productivity story, which matters for how rate policy gets debated. The notable gap is that no mechanism was offered — whether AI is lifting demand through investment and energy use, or costs through compute and power, changes the read entirely. For crypto and RWA markets, that distinction is the one worth tracking, since it shapes whether the rate backdrop tightens or eases.