US Federal Reserve official Kevin Warsh says the global economy has shown unexpected resilience and that artificial intelligence is the most consequential economic change of his lifetime. Speaking at an IMF-related event in Bangkok, he characterizes AI as a positive supply-side shift that can raise productivity and economic growth over the medium term, with implications for how monetary policy is conducted.
Outlets also report that Warsh expects AI investment to be inflationary in the short run, while delivering longer-term benefits. However, despite his comments linking AI to broader economic dynamics, he does not signal how the Fed will approach interest rates ahead of its upcoming meeting. One outlet emphasizes that he provides no hint on the next rate hike, reflecting limits on what his remarks imply for the near-term policy path.
