The Second day of testimony takes Fed chair Warsh in front of the Senate Banking Committee. There will be a lot of overlap from yesterday’s testimony in front of the House members:
- Recent inflation data is imperfect gauge of underlying inflation.
- In near term AI investment is quite good for jobs.
- I do not view a one-time change in prices from AI as necessarily being inflationary.
- Whether AI will be inflationary or not is up to the Fed.
- I believe that AI will be a job creator, but it will be disruptive with some people losing their jobs
- Wages have moved up at a reasonable pace.
- Timing of when wages will move up more from productivity gains is a puzzle.
- The surge in prices from AI is real.
- Business capital investment is contributing massively to GDP.
- I would guess that the trend in investment will continue.
- Balance sheet should be as small as possible so that it can expand if there is a crisis.
This article was written by Greg Michalowski at investinglive.com.
