Fed chair expects $700 billion AI investment to boost productivity
The Federal Reserve chair believes the $700 billion AI buildout will increase productivity and lower prices.
The AI spending spree by large tech firms has raised concerns among Fed policymakers about inflation.
The central bank’s June meeting minutes showed heightened awareness of inflation risks, partly due to the war in Iran and lingering tariffs.
The four largest US tech companies are pouring at least $700 billion into AI, which could impact the economy and inflation.