Kevin Warsh suggests artificial intelligence could significantly boost economic growth and productivity.
Federal Reserve Chairman Kevin Warsh stated that artificial intelligence has the potential to substantially increase economic growth. During a speech in Jackson Hole, Wyoming, Warsh noted that large pools of capital are currently flowing into AI-related infrastructure.
Show the rest of this summary
He identified AI as a potential new factor of production that will influence both interest rates and the broader economy. Warsh stated that the Federal Reserve is closely monitoring the development of large language models and the tokens used to access them. He posed questions regarding whether AI applications will lead to a sustained rise in productivity and how much of that value will eventually reach businesses and consumers. To address these questions, Warsh appointed a task force earlier this year focused on productivity and jobs. He previously stated in 2025 that he believed AI would increase productivity and subsequently push down inflation.