By Stephen Bartholomeusz
Publication Date: 2026-06-10 02:11:00
Kevin Warsh, who is chairing his first interest rate meeting at the Federal Reserve Board, argues that the artificial intelligence boom will enable significant cuts in U.S. interest rates. His new colleagues and many others aren’t so sure.
Warsh, who was appointed by Donald Trump with the expectation that he would try to push through the interest rate cuts that Trump has repeatedly and insistently demanded, has argued that AI will prove to be “structurally disinflationary” and that rather than reacting to current data, the Federal Reserve should make a forward-looking judgment that AI will reduce the inflation rate.
He has argued that AI will trigger a productivity boom – “the most productive wave of our time…”
