Fed Chair Kevin Warsh Warns of AI 'Shock' to Economy

Federal Reserve Chair Kevin Warsh warned that surging AI spending, while ultimately beneficial, could create a 'shock' to the U.S. economy, potentially driving up inflation. He pledged to contain price increases, acknowledging that AI investment is currently boosting demand more than supply. Warsh reiterated optimism for AI's long-term productivity and wealth generation, but cautioned that the path will be 'very bumpy' with uncertain market structures.