SynopsisFederal Reserve Chairman Kevin Warsh addressed AI's influence on investment prices. He stated that AI-driven investment will not be inflationary in the long run. Warsh believes AI will boost job creation in both short and long terms. However, he acknowledged potential labor market disruptions in the medium term. The Federal Reserve will monitor and manage any inflationary effects.Federal Reserve Chairman Kevin Warsh acknowledged Wednesday that AI-driven investment is driving up prices, but said that it won't be inflationary. He also ‌said ⁠he believes ⁠that in the short-term and the long-term AI will boost jobs, though in the medium term could be disruptive to the labor market."I don't view a ⁠one-time change ‌in prices as necessarily being inflationary because I think ⁠there's a supply response; in that way this is different from a foreign conflict and what it might do, which tends to reduce the supply side of the ‌economy," Warsh told the Senate Banking Committee. "Will it increase measured prices over the ⁠course of the next 12 months? I suspect it will be, but whether that's inflationary or not, that's up to the Federal Reserve and we're going to have something to say about it." ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now