Warsh: AI spending may lift prices without fueling lasting inflation

Federal Reserve chairman Kevin Warsh said on Wednesday that the AI investment boom will likely raise prices over the next year, but argued that those increases might not automatically be inflationary. Why it matters: Warsh drew one of his clearest distinctions yet between the AI boom's immediate price effects and persistent inflation — a nuance that could shape policymakers' response as investment remains strong. What they're saying: "Will it increase measured prices over the course of the…