Fed's Warsh says US economy not running too hot
SPY•Federal Reserve Chairman Kevin Warsh said the US economy is not running too hot despite demand pressures from AI investment, and that growth was not causing inflation. The Fed held rates steady.
1. Economy and inflation
Warsh said the economy was “pointing in the right direction” and that most of his colleagues did not judge it to be running too hot or too strong. He said he did not believe growth itself was causing inflation or making the Fed’s job harder.
2. Productivity trends
Warsh said productivity had improved and was moving higher, though it was difficult to measure precisely. He said most of the productivity change preceded discussions of superintelligence.
