Bloomberg Surveillance · Thursday, August 27, 2026
Aaron Kennett of Clear Harbor Asset Management suggests that the Federal Reserve will increasingly consider the impact of AI and associated data center investments in its discussions about inflation. This is due to the short-term inflationary pressures AI may create and the long-term potential for productivity gains or job displacement.
“expect AI and the extraordinary capital investment associated with the data center build out to increasingly enter the Fed's discussion.”
“in the short term, we're looking at inflationary pressures. that are impacting ultimately consumers or at least concerning consumers. And there's huge political consequence to that. In the long term, there's a hope that AI will generate significant productivity gains, but it could also disintermediate employment.”