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Powell Says AI Boom Isn’t a Bubble, Flags Job-Market Risks

He describes a data‑driven, wait‑and‑see approach to an AI buildout that is lifting growth.

Overview

  • He contrasted the current surge with the dot‑com era, saying highly valued AI leaders have earnings and viable business models.
  • He said investment in equipment and data centers is showing up in the real economy and is a notable source of growth.
  • He added that interest rates are not an important driver of the AI and data‑center investment wave.
  • He warned that AI could affect job creation, pointing to company hiring freezes and layoffs linked to the technology.
  • He said the Fed is broadening its data inputs, including private sources, and is watching signs of a bifurcated consumer economy.