Business & Economy · 23 views
Last Year, New Fed Chair Kevin Warsh Believed Artificial Intelligence Would Pave the Way for Interest Rate Cuts. Now, It's Doing the Exact Opposite.
Summary
In a Wall Street Journal op-ed last November scrutinizing the Federal Reserve, Kevin Warsh said artificial intelligence (AI) would be a "significant disinflationary force." Many experts took this to mean that Warsh was suggesting the benefits of AI could pave a path for the Fed to further cut interest rates. A lot has happened since then -- including Warsh's installation as the Fed's new chairman. But right now, AI is having the opposite effect and is likely contributing to elevated inflation.
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