PremiumAs expected, new Fed Chair Warsh did not tip his hand in terms of forward guidance. Speaking at ECB’s Forum on Central Banking in Sintra, Warsh said he is going to chart a new course at the Fed. Though not offering any guidance on rates, he said FOMC members will have a good family fight at the July meeting. On AI, he said the boom is showing itself most prominently in the US and he would rather have the problem of massive capex spending to invest in than the alternative.Taking a closer look at the Q&A, in the highly anticipated panel discussion at the ECB Forum, Goldman's economics team writes (note available to pro subs) that Warsh said that “inflation expectations have come down, and inflation risks have come down,” and that if AI causes the supply side to expand, “that has huge implications for monetary policy."