FED CHAIR WARSH SAYS AI COULD BOOST US ECONOMIC PRODUCTIVITY

What happened: Fed Chair Kevin Warsh said AI could significantly improve U.S. economic productivity over the medium term, speaking at an IMF forum in Bangkok, while warning adoption may disrupt employment and competition. Key numbers: Task force first field hearing in the San Francisco Bay Area on November 16. The Fed withdrew some monetary policy accommodation in September. Why it matters: Warsh said AI could generate a positive supply shock but may complicate Fed decisions on inflation, labor markets and financial stability. He declined to give guidance on upcoming rate decisions.

Fed Chair Kevin Warsh said AI could significantly improve U.S. economic productivity over the medium term, speaking at an IMF forum in Bangkok, while warning adoption may disrupt employment and competition.

Warsh said AI could generate a positive supply shock but may complicate Fed decisions on inflation, labor markets and financial stability. He declined to give guidance on upcoming rate decisions.