Fed Chair Kevin Warsh Warns of AI 'Shock' for Economy, Pledges to Contain Inflation
Warsh said chip and data center spending could lift consumer prices as inflation rose 3.7% in September, according to federal data.
- On Friday, Federal Reserve Chair Kevin Warsh warned of a potential "shock" to the U.S. economy from rising artificial intelligence spending, pledging to contain price increases as private sector funds drive up demand in Bangkok, Thailand.
- Prices rose 3.7% in September, pushing inflation well above the Fed's 2% target rate; this surge, compounded by Middle East conflict driving gasoline prices higher, prompted the central bank to raise interest rates in September.
- While Warsh remains optimistic about AI generating long-term productivity, he noted the path will likely be "a very bumpy one," as investors track these comments via the CME Group FedWatch Tool.
- Investors peg the chance of the Fed maintaining current interest rates at about 86% as of Friday morning, marking a significant uptick from about 55% on Wednesday, according to CME Group FedWatch Tool.
- Warsh opted against issuing a forecast regarding potential policy decisions at the meeting later this month, stating he does not "believe in saying now what I might do at the meetings we have over the balance of this year.
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Connect FM | Local News Radio | Dubois, PAFed Chair Kevin Warsh warns of AI ‘shock’ for economy, pledges to contain inflation
Federal Reserve Chair Kevin Warsh warned of a potential "shock" to the U.S. economy delivered by a rise in artificial intelligence spending, pledging to contain price increases as a flood of private sector funds drives up demand. "If you're a central banker, you're in the [...]
Fed Chair Kevin Warsh warns of AI ‘shock’ for economy, pledges to contain inflation - Regional Media News
Federal Reserve Chair Kevin Warsh warned of a potential "shock" to the U.S. economy delivered by a rise in artificial intelligence spending, pledging to contain price increases as a flood of private sector funds drives up demand. "If you're a central banker, you're in the [...]
Fed Chair Kevin Warsh warns of AI 'shock' for economy, pledges to contain inflation
Federal Reserve Chair Kevin Warsh warned of a potential "shock" to the U.S. economy delivered by a rise in artificial intelligence spending, pledging to contain price increases as a flood of private sector funds drives up demand.
The Federal Reserve fleshman said technological change was complexing the outlook for central banks as policymakers grapple with persistent inflation risks.
Fed Chair Kevin Warsh warns of AI 'shock' for economy, pledges to contain inflation - The Pulse of NH
The Nscale data center project in Barstow, Texas, Oct. 15, 2026. (Eli Hartman/Bloomberg via Getty Images)Federal Reserve Chair Kevin Warsh warned of a potential "shock" to the U.S. economy delivered by a rise in artificial intelligence spending, pledging to contain price increases as a flood of private sector funds drives up demand."If you’re a central banker, you’re in the business of trying to ensure stable prices and full employment, you’ve g…
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