Federal Reserve (Fed) Chair Kevin Warsh said on Wednesday that recent inflation figures provide an imperfect measure of underlying inflation. Warsh made the remarks while testifying on the Semiannual Monetary Policy Report before the US Senate Committee on Banking, Housing and Urban Affairs.

Key takeaways:

Any new leader should seek advice from the best minds available.

Recent inflation data are an imperfect gauge of underlying inflation.

The latest price figures remain imperfect measures of persistent inflation pressures.

Any central bank welcomes data moving in the right direction.

Whether Artificial Intelligence (AI) proves inflationary will depend on the Federal Reserve’s policy response.

Wages have increased at a reasonable pace.

The timing of stronger wage gains from productivity improvements remains a “puzzle".

In the near term, AI investment is positive for employment.

AI is expected to become a long-term job creator.

Over time, AI should support wages and employment.

In the transition period, AI is likely to cause disruption.

Warsh cannot guarantee that AI will cause no short-term disruption or provide reassurance about its immediate effect on jobs."