# Fed's Kevin Warsh: US Economy Not Running Too Hot from AI Boom

> Fed Chair Kevin Warsh says US economy isn't overheating despite AI investment surge.
- Title: Fed's Kevin Warsh: US Economy Not Running Too Hot from AI Boom
- Summary: Fed Chair Kevin Warsh says US economy isn't overheating despite AI investment surge. US Federal Reserve Chair Kevin Warsh stated the economy is not running…
- Keywords: federal reserve, kevin warsh, us economy, ai investment, productivity, interest rates, fed rate decision, money, business, Fed's, Kevin, Warsh
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/feds-kevin-warsh-says-us-economy-not-running-too-hot-from-ai-boom/articleshow/135279091.cms
- Published: 2026-10-28T19:48:00+00:00
- Read time: 1 min
- Topics: federal reserve, kevin warsh, us economy, ai investment, productivity, interest rates, fed rate decision, money, business
## 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
## Key takeaway

US Federal Reserve Chair Kevin Warsh stated the economy is not running too hot from AI investment growth, with productivity improvements observed but inflation not driven by economic growth.