Kashkari: US Economy Remains Strong Beyond AI Growth

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, pushed back against claims that the US economy is contracting when AI-related investment is stripped out. He said corporate profits and employment figures show the broader economy remains strong.

Kashkari pointed to a 4.1 percent unemployment rate and very low layoff and jobless-claims figures nationwide as evidence of underlying resilience. However, he acknowledged that the housing market is under pressure.

He noted that corporate earnings are showing broad-based strength well beyond AI-linked sectors, with many parts of the economy doing well. He also emphasized that AI is a clear growth engine.