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Trump Expects His Fed Pick and AI to Deliver a Replay of the ’90s Boom. Economists Have Doubts
Trump nominates Kevin Warsh to lead the Federal Reserve, aiming to boost growth through AI-driven productivity and advocating aggressive interest rate cuts.
- On Jan. 30, a former Fed governor was nominated, with arguments that AI-driven productivity could justify lower interest rates, aiming to boost the economy further.
- Betting on AI, the administration argues a Greenspan-like Fed chair could replicate the 1990s productivity boom, with Treasury Secretary Scott Bessent saying the president wanted an "open, Greenspan-like mind".
- During the late 1990s, growth surpassed 4% annually as the 1997–2000 U.S. economic expansion saw unemployment fall to 3.8% in April 2000 and the Fed delayed then raised rates.
- Many Fed policymakers say Warsh's AI-friendly stance departs from his past hawkish views, setting up a clash as Jerome Powell's term ends in May, making the leadership shift immediate.
- Longer-Term fiscal trends show deficits rising and the federal debt projected to reach 120% of GDP by 2035, making the economic environment less benign, Austan Goolsbee observed earlier this week.
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President Trump expects his Fed pick and AI to deliver a replay of the ’90s boom. Economists have doubts.
WASHINGTON — President Donald Trump, his Treasury secretary and his choice to lead the Federal Reserve believe they can coax the U.S. economy into partying like it’s 1999. They are putting their faith in artificial intelligence to duplicate what happened when another technology arrived in the 1990s: the internet. Back then, the American economy surged as businesses became more productive, unemployment tumbled and inflation remained in check. Tru…
·Chicago, United States
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Associated Press News+15 Reposted by 15 other sources
Trump expects his Fed pick and AI to deliver a replay of the '90s boom. Economists have doubts
President Donald Trump, his Treasury secretary and his choice to lead the Federal Reserve believe they can coax the U.S. economy into partying like it’s 1999.
·United States
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Total News Sources17
Leaning Left4Leaning Right3Center7Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 29%
C 50%
R 21%
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