Fed Chair Warsh Says US Economy Not Overheating Despite AI Demand Pressures

Federal Reserve Chairman Kevin Warsh said Wednesday the US economy is not running too hot despite demand pressures from the AI investment boom, and that the Fed's goal "isn't to throw sand in the gears" of the economy. His remarks came at a news conference after the central bank held rates steady. "Is the economy running too hot? Is the economy running too strong? That isn't the judgment of most of my colleagues," Warsh said. He added that potential growth is hard to determine and that he does not believe growth itself is causing inflation or complicating the Fed's task. Warsh pointed to improving productivity, saying it cannot be measured precisely but has been moving higher. He said much of that change likely precedes current discussions of superintelligence.