Fed's Warsh says US economy not running too hot

Key facts

• US economy is not running too hot, says Fed Chair Kevin Warsh.
• Warsh believes productivity has been moving higher.
• Fed held interest rates steady.

Federal Reserve Chair Kevin Warsh said on Wednesday that the US economy is not running too hot, despite some demand pressures from the boom in AI investment. Speaking after the Fed held rates steady, Warsh told a news conference that the US economy is "pointing in the right direction."

Warsh said he did not believe that growth itself was causing inflation and making the Fed's job harder. He added that he believes productivity has been moving higher in the economy, though it is imperfectly measured.