Fed Chief Kevin Warsh Warns Artificial Intelligence Disrupts Economy

Fed Chair Kevin Warsh warns that artificial intelligence poses a bumpy economic shock for central bankers.

Federal Reserve Chairman Kevin Warsh warned that rapid advancements in artificial intelligence are delivering an economic shock and complicating the task of managing inflation. Speaking publicly, he described the technology as the most consequential economic shift in his lifetime. While he remains optimistic about its ultimate benefits, he cautioned that the transition period will be bumpy.

• The reactionKevin Warsh described artificial intelligence as the single most consequential economic change he has witnessed.
• The outlookCentral bankers face heightened difficulty in setting policy as rapid technological shifts alter long-term economic models.