$288M in Seized Crypto Moved to Coinbase Prime Amid AI Boom Inflation Concerns

US government officials have moved $288 million in seized cryptocurrency to Coinbase Prime, sparking debate over liquidation and asset management.

Freya Beamish, chief economist at GlobalData TS Lombard, is calling for higher interest rates from the Federal Reserve to combat inflationary pressures caused by the AI boom.

Beamish argues that the massive investment in data centers, power infrastructure, and semiconductors is creating demand now, pushing up prices for energy, construction, chips, and skilled labor. She believes productivity gains from AI will not materialize until later, exacerbating inflationary pressures.

The Fed's failure to tighten policy could lead to an accumulation of borrowing and leverage across the financial system as cheap money chases AI-adjacent opportunities, according to Beamish.