Inflation Expectations Have Declined, Warsh Says
Federal Reserve Chairman Kevin Warsh said today that inflation expectations and inflation risks have declined in recent weeks, while reaffirming the central bank's commitment to reaching its 2% inflation target.
Speaking in Sintra, Portugal, Warsh said expectations of inflation over the first four weeks of the current period have come down. He emphasized the Fed will maintain its independence and remain focused on price stability.
"If there were people in households or the business sector, in the financial markets, who thought that this central bank was going to be comfortable with an inflation objective above 2% -- well, I guess they'd be disappointed: We're going to deliver price stability in the U.S.," Warsh said.
The Fed chairman noted that labor markets are steady and the supply side remains solid.
Warsh declined to provide forward guidance on monetary policy, saying the Fed will chart a new course to make better decisions.
On artificial intelligence, Warsh said the AI boom is showing itself first and prominently in the United States. He noted the U.S. is likely to be a big winner in AI development, describing the current period as the first or second inning of this revolution. Warsh added that it is up to the central bank to decide if AI is inflationary.
Source: Newsmaker.id
