Fed’s Warsh says AI path will be ‘very bumpy’ but ultimately ‘very good’ for wealth
Warsh said AI could lift productivity and wealth, but he warned that near-term job effects remain unclear and the transition may be bumpy.
- Federal Reserve Chairman Kevin Warsh spoke in Bangkok on Friday, calling AI the "most consequential change" to the global economy while warning the path forward will be "bumpy."
- Persistent inflation pressure stems from AI and the Iran war; diesel prices remain above $6 per gallon, threatening to fuel overall inflation for months to come.
- Policymakers enter a "blackout" period on Saturday ahead of the October 27 Fed meeting. Bank of America analysts wrote that recent core inflation "strengthens the case for an October hike."
- Warsh reiterated that AI will "make economies and countries that put it to good use more productive." Data center companies plan to raise $570 billion from debt markets this year.
- President Donald Trump criticized the Fed board as "very hostile," telling reporters "I'm relying on Kevin." Voters remain dissatisfied with his economic handling as midterm elections approach.
40 Articles
40 Articles
The rise of artificial intelligence and the colossal investments it generates has become the main driving force behind the growth of the world's economy and trade The President of the Reserves
Federal Reserve Chairman Kevin Warsh warned of rising inflation at the IMF World Bank 2026 event, while also highlighting AI's potential to transform the economy and aid in policy analysis. He emphasized the need to closely monitor the labor market's impact over the next 12-18 months.
Statements by the US Federal Reserve Banker support stock prices and dampen the prospect of a close interest rate hike. Investors gave Warsh a further taste of his new style on Friday.
Watch Fed's Warsh Says AI Will Change Monetary Policy Conduct
Fed Chairman Kevin Warsh described AI as potentially the most consequential change to the US and global economy in his lifetime, calling it a positive supply shock over the medium term. He spoke at an IMF event moderated by IMF Chief Kristalina Georgieva in Bangkok, Thailand.
AI 'most consequential change' to economy: Kevin Warsh
US Federal Reserve boss Kevin Warsh said on Friday that AI technology was the "most consequential change" to the global economy he had seen, predicting its effects would be positive but the path forward would be "bumpy". "I'd say the advent of this new technology is probably the most consequential change to the US and the global economy in my lifetime," he told an event at the IMF-World Bank Annual Meetings in Bangkok. Warsh said he takes the ma…
Coverage Details
Bias Distribution
- 65% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
