Kevin Warsh Says AI Productivity Could Open Path to Easier Fed Policy
Kevin Warsh, President Trump’s nominee for Federal Reserve chair, argues that productivity gains from generative AI could exert persistent downward pressure on inflation and justify a shift toward lower policy rates. Markets have already repriced expectations around his nomination, but political, legal and operational frictions — including a Justice Department inquiry, Senate holds and limits to rapid balance-sheet changes — could constrain how quickly any policy pivot is implemented.
