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Fed Chair Warns AI Hardware Prices Surge, Inflation Risks Ease

7/1/2026

Summary

Story summary

Federal Reserve (Fed) Chair Kevin Warsh warned that AI-driven capital spending is lifting computer-hardware prices.
Warsh said inflation risks have declined because energy prices fell after the United States and Iran signed a memorandum ending their war.
Warsh told a central-bank conference in Sintra, Portugal that the Fed will remain independent and keep pursuing price stability.
Warsh declined to forecast future rate moves, reiterating the Fed’s opposition to forward guidance.

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Story summary

Federal Reserve (Fed) Chair Kevin Warsh warned that AI-driven capital spending is lifting computer-hardware prices.
Warsh said inflation risks have declined because energy prices fell after the United States and Iran signed a memorandum ending their war.
Warsh told a central-bank conference in Sintra, Portugal that the Fed will remain independent and keep pursuing price stability.
Warsh declined to forecast future rate moves, reiterating the Fed’s opposition to forward guidance.