Apollo Global Management's Chief Economist, Torsten Slok, has warned that the initial phase of the AI infrastructure boom could exacerbate inflation, potentially delaying interest rate cuts by the Federal Reserve. Slok highlighted that rising costs in semiconductors, energy, and labor are contributing to inflationary pressures, complicating the task for newly appointed Fed Chair Kevin Warsh. The AI boom, while promising economic growth, is impacting labor markets and monetary policy. U.S. tech companies are expected to invest up to $725 billion in AI data center equipment this year. Warsh had previously suggested that AI-driven productivity gains could support a more accommodative monetary policy, a stance that contrasts with his predecessor Powell's approach, which faced criticism for not reducing rates swiftly enough.