Powell Warns of AI Bubble and Economy Overreliance on the Wealthy

Jerome Powell highlighted that the US economy is experiencing unusually high activity driven by AI investments, which are concentrated among wealthy firms and households, potentially deepening inequality and creating a skewed economic recovery. The growth is largely fueled by a few tech giants and affluent consumers, while lower-income groups face challenges in employment and income, raising concerns about the sustainability and fairness of the current economic expansion.