AI investment critical to US economic growth, says apollo economist

AI hardware continued to drive August’s increase in import prices, as it has throughout the year. Commodity-price volatility from the Iran war raised the cost of industrial materials at the border. Companies face higher input costs and rising expenses tied to the AI buildout. Torsten Slok, Chief Economist at Apollo Global Management, discussed the Fed's rate decision and highlighted the role AI investment has played in supporting the US economy. Slok emphasized that AI spending has been 'critical' for the US economy, underscoring its importance in sustaining growth amid rising costs and global tensions. The analysis comes as the US continues to navigate economic challenges, with AI investment seen as a key driver of resilience and innovation. The impact of AI on import prices and industrial costs remains a focal point for economists and policymakers alike.