Fed Chair Kevin Warsh told a semiannual monetary policy hearing that recent
inflation readings do not fully reflect underlying inflationary pressure and
that one-off price moves do not necessarily become persistent. On artificial
intelligence, Warsh said short-term AI investment is likely to be positive for
employment—supported by U.S. infrastructure buildout—and that AI will be
disruptive. He is seeking access to a range of new AI models and currently sees
AI’s demand-side effects are emerging faster than its supply-side effects.
