Howard Schneider

The artificial intelligence boom has left central bankers faced with cooling the rest of the economy to lower price pressures amplified by an industry of marquee names like Amazon, ​Apple and Anthropic considered immune to rate hikes.

US government debt hit a milestone in August.

Cleveland Federal Reserve President Beth Hammack said on Monday she hopes the Fed can lower inflation without damaging ​the job market, but that may entail cooling the blistering pace of corporate investment or the market-driven wealth gains fueling personal consumption.

The US is in the middle of a historic and costly technological revolution, which has spurred immense stock market gains that have boosted household wealth. But some Americans are benefiting more than others.

A readout of the Federal Reserve's last policy meeting is ​expected to show a much broader debate than reflected in the unanimous decision to raise interest rates.

Federal Reserve ​policymakers were divided last month over the rationale for raising interest rates, with "some participants" seeing a hike ‌as needed to keep the impact of energy and other price shocks at bay, but a more hawkish core viewing it as necessary to guard against emerging demand-driven inflation.

President Donald Trump and his Republican Party will carry a 4.2% unemployment rate into the congressional elections, a hallmark of a solid US job market. Yet many voters don't see it that ‌way.

The Federal Reserve's Inspector General on Wednesday said it found no grounds for a criminal referral or administrative misconduct tied to cost overruns in a US central bank renovation project that had drawn ​scorn from President Donald Trump and an investigation of former Fed chief Jerome Powell.

Too big a pullback in the US central bank's communications could lead to higher and more volatile interest rates and ​inflation if the public and businesses are left to guess ‌how it would react to different economic developments, St. Louis Federal Reserve President Alberto Musalem said on Tuesday.

Kansas City Fed President Jeff Schmid ​said that as the artificial intelligence ‌boom unfolds it will be important for the Fed to understand ​if the network of ​firms and contracts developing in ⁠the industry is becoming so ​large it is too big ​to fail.