Fed Chair Kevin Warsh Statement

Federal Reserve Chairman Kevin Warsh said the US economy was not running too hot despite demand pressures from the artificial intelligence investment boom.

“Is the economy running too hot? Is the economy running too strong? That isn't the judgment of most of my colleagues”

Economy Pointing Right Direction

Warsh noted the US economy was 'pointing in the right direction' after the Fed kept interest rates unchanged.

Productivity Improvements

Warsh said productivity has been moving higher in the economy, though precise measurement remains difficult.

“My judgment is we have seen an improvement in productivity. We can't measure it precisely.”

AI Boom Not Driving Inflation

Warsh stated economic growth itself is not fuelling inflation or making the Fed's job more challenging.

“I think most of that change in productivity precedes everything we're talking about superintelligence, but productivity has been moving higher in the economy, however imperfectly measured.”

Politics Did Not Influence Rate Decision

Warsh confirmed political considerations played no role in the Federal Open Market Committee's decision to keep interest rates steady.

“politics played no role in the decision. I just spent two days with my colleagues upstairs. I didn't hear an utterance about politics.”

Lisa Cook Investigation Status

Warsh said he would not be involved in a White House investigation into Fed Governor Lisa Cook over alleged misstatements on mortgage applications.

“to my knowledge he would not be involved in a White House investigation into Federal Reserve Governor Lisa Cook”