Overview
- Powell contrasted today’s AI leaders with the dot‑com era, saying highly valued firms now have earnings and viable business models.
- He called spending on equipment and data centers one of the economy’s big growth drivers following the Fed’s second straight rate cut.
- He warned AI could “absolutely” affect hiring, noting layoffs and freezes tied to automation and saying adjusted job creation is now pretty close to zero.
- He said many companies report a bifurcated economy, with lower‑income consumers trading down while higher‑income households keep spending.
- He argued AI and data‑center investment is largely not rate‑sensitive, as analysts debate how easing could support stock valuations even as some investors question escalating AI capex.