Kevin Warsh's Federal Reserve Is Split on Artificial Intelligence, and It Could Have Dire Consequences for Investors
Is AI causing inflation or will it combat it?
Overview
Few technologies have had as big an impact on both everyday life and financial markets in recent years as generative artificial intelligence (AI). AI services powered by large language models have permeated the workplace, with many businesses suggesting AI investments will pay off in greater worker productivity. Meanwhile, hyperscalers such as Alphabet and Microsoft, are spending hundreds of billions of dollars to build new data centers and outfit them with chips and networking equipment to train and run their AI models.
There's no doubt AI has already had a huge impact, but how it will affect our future is at the core of a recent debate within the Federal Open Market Committee (FOMC). Chairman Kevin Warsh was appointed earlier this year to oversee the board responsible for the central bank's monetary policy, with the dual mandate of price stability and full employment. At the most recent meeting in June, the governors noted that AI is having a significant impact on inflation. The debate within the group, however, is what the long-term impact will be and what to do about it.
Federal Reserve Chair Kevin Warsh. Image source: Federal Reserve.
Details
Source
Originally published at www.fool.com.