{"id":2062,"date":"2026-07-01T18:10:03","date_gmt":"2026-07-01T18:10:03","guid":{"rendered":"https:\/\/trustedmovinggroups.com\/?p=2062"},"modified":"2026-07-01T18:10:03","modified_gmt":"2026-07-01T18:10:03","slug":"fed-chairman-says-inflation-risks-are-declining-predicts-ai-will-create-jobs","status":"publish","type":"post","link":"https:\/\/trustedmovinggroups.com\/?p=2062","title":{"rendered":"Fed chairman says inflation risks are declining, predicts AI will create jobs"},"content":{"rendered":"
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Federal Reserve Chairman Kevin Warsh said Wednesday that inflation risks have declined in recent weeks but that the central bank still had more work to do to rein in rising prices.<\/p>\n

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\u201cInflation risks have come down,\u201d Warsh said, noting that \u201cenergy prices have come down quite substantially\u201d since the United States and Iran signed a memorandum of understanding to end the ongoing war last month.<\/p>\n

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\u201cThey\u2019re still a bit above where they were pre-conflict, but they\u2019ve come down,\u201d he said. <\/p>\n

Inflation is a sore spot for Americans, who are growing more dissatisfied with the economy, according to polls and consumer surveys. In May, inflation as measured by the Consumer Price Index jumped to 4.2%, its highest level since 2023. The Fed\u2019s preferred inflation gauge also showed price growth was hot, driven by the surge in energy prices. <\/p>\n

Warsh also weighed in on artificial intelligence\u2019s growing impact on the economy and inflation, sounding an optimistic note on longer-term prospects for the technology.<\/p>\n

\u201cWe\u2019re all being hit by a series of shocks in the U.S.,\u201d Warsh said. \u201cThe AI shock is leading to a boom in capital expenditures. We see that first and foremost in demand, but I\u2019m confident we\u2019re going to see it in supply at some point. So we\u2019re spending most of our time trying to monitor those developments.\u201d<\/p>\n

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Still, the central bank chief declined to give any hint as to if policymakers will raise interest rates: \u201cI\u2019m not going to give you any prediction as to what we will do.\u201d Warsh has said that he plans to break with recent Fed leaders in limiting the amount of communications about the Fed\u2019s future plans.<\/p>\n

Asked if the Fed will make that decision regardless of what President Donald Trump wants, Warsh said, \u201cWe\u2019ve been an independent central bank for a very long time. We\u2019re going to be an independent central bank at this moment, and you\u2019re going to see no changes on that.\u201d Trump has repeatedly pushed for the Fed to cut its key rate, often attacking Warsh\u2019s predecessor, Jerome Powell, over the matter. (Powell, like Warsh, was appointed to the role by Trump.)<\/p>\n

Warsh was in Sintra, Portugal, speaking alongside European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem at one of the highest-profile gatherings of central bankers each year.<\/p>\n

Lagarde largely agreed with Warsh\u2019s view on inflation, saying that upside risks to inflation and downside risks to economic growth prospects \u201care probably more broadly balanced\u201d now than \u201ca few weeks ago as a result of what we\u2019re seeing\u201d with energy prices. <\/p>\n

The European Central Bank is one of only two major central banks to have raised rates since the war with Iran started, while the Federal Reserve has kept rates unchanged in its most recent meetings as it monitors the passthrough of inflation from energy to other parts of the economy.<\/p>\n

One key area Warsh said the Fed is monitoring: the AI industry.<\/p>\n

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As major cloud computing companies such as Microsoft, Meta, Alphabet and Amazon rush to build data centers around the globe to power new AI models and systems, the price of computer equipment and memory specifically has been skyrocketing.<\/p>\n

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Consumer electronics companies such as PlayStation and Xbox have raised prices as a result. But the most notable price hike came Thursday, when Apple hiked prices on many of its laptop and desktop computers along with iPads, the Apple TV device and HomePod speaker.<\/p>\n

Apple didn\u2019t raise the prices of the iPhone, the Apple Watch and AirPods, but many analysts project those could be next. <\/p>\n

Asked about the AI boom and whether it may be inflationary over the longer term, Warsh said it is \u201cone of the central questions that all of us have for our day jobs.\u201d <\/p>\n

But Warsh predicted that the United States was \u201clikely to be a big winner over the medium term in this.\u201d<\/p>\n

\u201cWho knew when the internet was born that the internet was going to create a million and a half jobs as Uber drivers? We are in the first or second inning of this revolution,\u201d he said. <\/p>\n

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\u201cThis is a big paradigm shift, both for the conduct of our policy and for our economies,\u201d Warsh continued. \u201cI think the jobs will be greater, prosperity will be stronger.\u201d<\/p>\n

Several economists, corporate leaders and analysts warn that AI could significantly reduce jobs. A study from financial operations firm Ramp found that companies that are spending more on AI are also growing their workforces.<\/p>\n

Repeating what the Fed said after its most recent interest rate meeting, Warsh said that labor markets are steady and the demand side of the economy is solid: \u201cAgain, this is before we see the fruits of AI.\u201d <\/p>\n

\u201cBut we\u2019ve all looked around and we\u2019ve seen that prices are too high, and I don\u2019t think I\u2019m the only one on this stage that\u2019s recommitted to deliver price stability,\u201d Warsh said, referring to one of the central bank\u2019s two legal mandates.<\/p>\n

In Warsh\u2019s first meeting as chairman last month, the Fed held interest rates steady as other policymakers projected a likelihood of hiking interest rates before the end of the year \u2014 projections the chairman would downplay in a press conference.<\/p>\n

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The Fed\u2019s rate-setting committee is scheduled to meet July 28 and 29.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve Chairman Kevin Warsh said that inflation risks have declined but that the central bank still had more work to do to rein in prices.<\/p>\n","protected":false},"author":1,"featured_media":2061,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-2062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"yoast_head":"\nFed chairman says inflation risks are declining, predicts AI will create jobs - Trusted Moving Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trustedmovinggroups.com\/?p=2062\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fed chairman says inflation risks are declining, predicts AI will create jobs - 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