Kevin Warsh said artificial intelligence could make economies that use it well richer and more productive, but warned the transition will be uneven and uncertain for jobs.
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01Summary
- 01Warsh declined to signal whether the Federal Reserve will raise interest rates again later this month.
- 02He said there is a “synchronous tightening” by central banks around the world and “there’s no free riders”.
- 03The Fed raised rates to 3.75% to 4% last month, its first hike since 2023.
- 04Traders priced in a 72.3% chance the Fed will keep rates unchanged at the 27-28 October meeting, according to CME Fed Watch.
- 05Warsh called AI “probably the most consequential change to the U.S. and the global economy in my lifetime” and said its path will be “very bumpy”.
02Why it matters
The remarks matter because they point to the Fed’s next move on rates, which can affect borrowing costs and markets. They also show how policymakers are thinking about AI’s possible boost to productivity and wealth.
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