Fed's Warsh Says AI Will Change Monetary Policy Conduct

Federal Reserve official Kevin Warsh stated that artificial intelligence represents a potential long-term positive supply shock that could significantly alter how global monetary policy is conducted. During an IMF event in Bangkok, he characterized the technology as one of the most consequential economic shifts he has observed. This perspective suggests that central banks may eventually need to adjust their analytical frameworks to account for the productivity and structural changes introduced by widespread AI adoption.