Warsh: AI Revolution Could Spur Growth
Federal Reserve Chairman Kevin Warrish stated that artificial intelligence can enhance economic growth and give a strong boost to productivity in the medium term. However, he cautioned that the transition phase may be challenging and pose difficulties for monetary policymakers. Warrish emphasized that AI is beginning to stimulate demand, with expectations of a positive supply-side shock over the medium term—changes that could have significant impacts on the U.S. and global economies. He pointed out that this transitional period will be accompanied by uncertainty regarding employment and the market, with the Federal Reserve remaining committed to price stability. The Fed is also assessing the implications for inflation, productivity, and financial stability, without revealing the next steps. Warrish praised the important role AI plays in supporting growth and mentioned that its effects are being monitored through dedicated teams, with field hearings expected to commence in November.
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