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In brief Fed Chair Kevin Warsh dedicated a full section of his Jackson Hole keynote to artificial intelligence, calling the current moment a "hinge point in history." Warsh said annualized sales at the two leading AI labs now top $100 billion, an increase of more than 500% from a year earlier, and confirmed the Fed now treats AI as "potentially a new factor of production." Warsh flagged that he's watching AI's "second derivative"—whether capital-spending growth is still accelerating. Kevin Warsh's first Jackson Hole keynote as Federal Reserve chair made headlines mostly for what he refused to say about interest rates.
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