Fed’s Warsh says AI path will be ‘very bumpy’ but ultimately ‘very good’ for wealth
Warsh said AI could make economies more productive and wealthier, while warning the transition may be bumpy and job effects remain unclear.
- Federal Reserve Chair Kevin Warsh addressed the International Monetary Fund and World Bank annual meetings in Bangkok, Thailand, on Oct. 15, 2026, describing Artificial intelligence as a potentially transformative force for productivity and wealth creation.
- Since the Federal Reserve raised interest rates to a range of 3.75% to 4% last month, the global economy has "broadly conformed" to central bank expectations, Warsh noted.
- Warsh warned the road to Artificial intelligence integration will be "very bumpy," with near-term employment impacts remaining uncertain over the next 12 to 18 months.
- Traders see a 72.3% chance the Federal Reserve will keep interest rates unchanged, according to CME Fed Watch, while a communication blackout period begins later Friday ahead of the Oct. 27-28 meeting.
- Artificial intelligence is likely to reshape the real economy, Warsh suggested, impacting demand before eventually delivering a positive supply-side shock to the global economic landscape.
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Federal Reserve Chairman Kevin Worse said he was optimistic about the effects of artificial intelligence. He noted that artificial intelligence could change the real economy, but its medium-term impact on labor is questionable. Speaking at the annual meetings of the International Monetary Fund and the World Bank in Bangkok, Thailand's capital, Wares said the Fed needed to consider the risks that threaten financial stability. Read more at iefimer…
AI 'most consequential change' to US and global economies in my lifetime: Fed Chair Kevin Warsh
Federal Reserve Chair Kevin Warsh called artificial intelligence the most consequential change to the US and global economies in his lifetime, cautioning that its near-term impact on employment remains uncertain. Speaking with IMF chief Kristalina Georgieva, he also flagged global investment growth, rising prices and the Feds commitment to price stability.
Federal Reserve Chairman Kevin Warsh stated that economies that effectively utilize artificial intelligence could become more productive and wealthier, but cautioned that this transformation could be painful and that its short-term impact on employment is yet to be known.
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