Fed Chair: AI Expected to Push Up Measured Price Levels Over Next 12 Months

Odaily News: During his testimony before the Senate Committee on Banking, Housing, and Urban Affairs at the hearing on the "Semiannual Monetary Policy Report to the Congress," Fed Chair Waller stated that recent inflation data does not fully reflect underlying inflationary pressures. In the short term, AI investment is beneficial for employment and will lead to disruptive changes. He has shifted investments into cash equivalents and short-term Treasury bonds, and expects AI to push up observed price levels over the next 12 months. Whether AI leads to inflation will depend on the Federal Reserve.