Federal Reserve Chair Kevin Warsh said AI represents a hinge point for the economy, noting its potential to boost growth and reshape jobs. The Fed has increased its focus on AI since the 2022 launch of ChatGPT, with dozens of references to the technology in recent policy meeting summaries. Earlier summaries rarely mentioned AI, instead highlighting equity gains driven by large technology firms. In spring 2024, meeting minutes first recorded explicit AI comments, suggesting possible productivity gains from AI adoption. By late 2025, officials debated whether AI could sustain growth without raising prices or increasing employment. Some officials argued that AI‑driven productivity could allow the economy to expand while containing inflation, while others warned that substantial spending on AI infrastructure could contribute to higher prices. Analysts noted that AI‑related investment has risen to hundreds of billions of dollars annually, prompting comparisons to the dot‑com era. Fed officials also expressed concern about high valuations, concentration of market value, and debt financing tied to AI projects. In July 2026, members split on whether AI spending is already contributing to broader price increases. Warsh asked whether AI will raise living standards or undermine them, and whether its benefits will materialize, but offered no definitive answers.