New Delhi, June 21 -- The ongoing surge in artificial intelligence (AI)-related spending could keep inflation elevated in the United States and force interest rates to remain higher for longer, according to Jefferies' latest Greed & Fear report.

The report said strong spending by major technology companies on AI infrastructure is supporting economic growth but is also adding to inflationary pressures, complicating the outlook for monetary policy.

"One consequence of the stickiness of inflation in America, with headline CPI inflation running at its highest level in three years, is that nominal growth has been running at 5.9% YoY in 1Q26, driven primarily by the still accelerating AI capex arms race," the report said.

According to Jeffer...