Federal Reserve Chair Jerome Powell has dismissed concerns that the current wave of investment in artificial intelligence (AI) represents a bubble, highlighting that technology firms are generating substantial cash flow. This statement comes as the Federal Reserve reduced interest rates by 25 basis points to a range of 3.75%-4.0%, indicating a shift towards a more neutral monetary policy stance.
Powell also noted that while the U.S. economy remains robust, there are increasing risks of a cooling labor market. The rate cut marks the end of the Fed's quantitative tightening, with the next policy decision scheduled for December 1.
Fed Chair Powell Dismisses AI Bubble Concerns, Highlights Tech Cash Flow
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