Fed official Barkin emphasizes inflation risk, AI could change stablecoin usage

Fed official Thomas Barkin stated that inflation continues to be the most significant risk for the central bank. Barkin expressed that investments in artificial intelligence are creating inflationary effects in the short term. He emphasized that monetary policy is close to a neutral level and noted that he does not see inflation declining at the moment. He mentioned that cost pressures, which began with tariffs over the last 18 months, have spread widely, and companies feel compelled to reflect these high costs in their prices. Evaluating the economy as healthy and demand as strong, Barkin noted that companies are cautious in hiring but are not resorting to layoffs. He stated that AI is a crucial part of strong demand and that infrastructure investments are increasing inflation in the short term. Hammack indicated that the use of stablecoins by AI agents would represent a significant change. These statements suggest that strong demand and ongoing cost pressures could be decisive in the pace of the Fed's policy actions.

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