Economists and analysts have suggested that AI could increase inflation in the short term, however, this could increase it at a time when it comes to more urgent inflationary pressures like war. In the short-term, this is seen as increasing inflation in three key areas: electricity, construction, and memory chips. Consumer electricity prices rose 4.6% in March from the previous year due to AI-driven demand, and construction wages for construction workers increased by 4.3% from last year, compared to 3.5% for all workers due to surging demand from data centers. JPMorgan Asset Management's chief global strategist, David Kelly, stated that it is unlikely that corporations have realized significant cost savings from deploying AI models yet and unlikely that they would have passed on cost savings to consumers. If companies don't know what to do with AI and a slowdown hits, they may pull back on AI spending. However, if AI achieves amazing productivity and leads to sweeping unemployment, we might see disinflation. The topic of AI will be discussed at President Trump's nominee to run the Federal Reserve, Kevin Warsh, is likely to come up at his confirmation hearing.