Federal Reserve Chairman Kevin Warsh says inflation risks have decreased in recent weeks, but the central bank still needs work to control rising prices. Warsh attributed this decrease to lower energy prices since the US and Iran signed a conflict-ending agreement last month.
The Fed is keeping an eye on artificial intelligence’s growing impact on the economy and inflation. While some predict AI could reduce jobs, Warsh remains optimistic about its long-term benefits, calling it “a big paradigm shift” that will lead to stronger prosperity. However, he also notes that prices are too high and the Fed is committed to maintaining price stability.
Warsh declined to comment on whether interest rates would be raised in July’s Fed meeting, citing his plan to limit communications about future plans. This decision comes amid pressure from President Donald Trump to cut key rates.
Source: https://www.nbcnews.com/business/economy/fed-chairman-warsh-inflation-ai-jobs-rcna352550