AI stock selloff pressures crypto, Fed holds rate at 4%

Recent volatility in artificial intelligence (AI) stocks has led to a broader market pullback and prompted discussions on potential impacts for inflation and the Federal Reserve’s policy direction. The rapid selloff has diminished risk appetite among investors, with both equities and cryptocurrencies experiencing notable declines over the past week. BMO Capital Markets senior economist Jennifer Lee stated on Bloomberg This Weekend that a slowdown in data-center investment could help ease construction demand and, over time, reduce upward pressure on inflation.