Wealthion · Monday, July 13, 2026
Chris Casey believes Fed Chair Kevin Warsh is misjudging the magnitude of AI's deflationary impact, despite agreeing that AI is a revolutionary and partially deflationary technology. Casey compares AI's early impact to the dot-com boom, suggesting it was historically offset by Federal Reserve actions like increasing the money supply.
“He's very focused on it. I I actually think it's a misstep by him. I think it's a disbelief on his part.”
“Now, he's correct in that AI two things you said about it. One, it's probably the most revolutionary technology we've had in our lifetimes. Agree with that. Two, he says it's going to be extremely deflationary. I agree with that in part.”
“Um, it has a deflationary effect, but I think a good proxy for this, what he should be looking at is the dot com boom, right? The internet is coming up. You can't tell me that the first, you know, 5 to 10 years of of the internet weren't deflationary. They were.”
“That doesn't show up in the CPI. You don't see that because it's dwarfed by the actions of the Federal Reserve as far as pumping up the money supply.”