AI market differs from bubble, companies have business models and profits, says Fed Chair Powell

Economic Growth & Investment - AI investment is a significant driver of current economic growth [1] - Unlike the dot-com bubble of the 1990s, current tech companies have earnings and business models [2][3] - Investment in equipment for data centers and AI is a major growth source [3] Consumer Spending - Consumer spending is a larger part of the economy than AI investment [3] - Consumer spending remains strong, defying negative forecasts, potentially skewed towards higher-end consumers [3] Labor Market - The supply of workers has sharply decreased due to immigration and lower labor force participation [3][4] - Reduced worker supply lessens the need for new jobs [4] - Labor force participation decline indicates softening demand [4] Economic Outlook - The economy is growing at a slower rate, projected around 1.6% this year, compared to 2.4% last year [5] - A government shutdown could have reduced growth by a couple of tenths of a percentage point [5] - The economy is still growing at a moderate pace [5]