Fed’s Logan: Data Center Demand Adds Modest Inflation, Oil Output Limited by Infrastructure
Dallas Fed President Lorie Logan stated that rising electricity demand from data centers is likely to add modest inflationary pressures. She also noted that high oil prices may not significantly boost U.S. production due to infrastructure constraints like limited gas takeaway capacity.
Dallas Federal Reserve President Lorie Logan commented on two key factors affecting the economy. She said that surging electricity demand driven by data centers is expected to contribute modestly to inflationary pressures.
On the oil market, Logan highlighted that even with elevated crude prices, U.S. production may not see a substantial increase. The reason is infrastructure bottlenecks, specifically limited natural gas takeaway capacity, which restricts output growth.
These remarks come as the Fed continues to monitor inflation dynamics and supply-side constraints across various sectors.
Source: First Squawk