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Cleveland Fed President Hammack sees AI fueling inflation, says rate hikes may be necessary

CNBC · Jun 30, 2026, 3:43 PM · Also reported by 4 other sources

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  • Cleveland Federal Reserve President Beth Hammack said Tuesday that "insatiable" demand for artificial intelligence infrastructure is fueling inflation.
  • Should that and other pressures continue to keep prices elevated, that could drive the need for higher benchmark interest rates, the central bank policymaker said in a CNBC interview.

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Cleveland Federal Reserve President Beth Hammack said Tuesday that "insatiable" demand for artificial intelligence infrastructure is fueling inflation.

Should that and other pressures continue to keep prices elevated, that could drive the need for higher benchmark interest rates, the central bank policymaker said in a CNBC interview.

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