Fed Chair Warsh Wants Answers on AI Inflation—and Bitcoin May Feel the Impact

Federal Reserve Chair Kevin Warsh will convene a public forum on 16 November to consider whether artificial intelligence will reduce inflation, add to price pressures or displace workers. The discussion matters for Bitcoin because the Fed’s view of AI’s economic effects could shape interest-rate decisions, which influence how attractive risky investments are to investors.

Warsh has said AI could raise productivity and lower costs, while Governor Lisa Cook has warned that investment in AI is adding inflationary pressure before those gains are clear. Bitcoin fell below $69,000 on Friday after stronger-than-expected inflation figures renewed concerns about a rate rise. AI data centres and Bitcoin miners also compete for electricity and infrastructure: Hyperscale Data halted mining at a Michigan site to serve an AI customer under a deal potentially worth more than $1.2 billion. The forum will not decide the Fed’s next rate move, scheduled for 9 December.