Fed's Musalem (2028 voter) says the economy is very strong now, but predicated on continued growth; right now AI capex boom is resulting in demand pressure, with productivity and supply relief not yet apparent

Bubble analysis

This item bears on the AI bubble question because it names one of the core mechanisms behind bubble fears: massive AI capex is boosting demand first, while the productivity payoff has not shown up yet. If spending keeps running ahead of measurable output, that is the classic pattern of a bubble. Still, Musalem gives no figures and does not explicitly call it a bubble, so this is only indirect evidence.