Kevin Warsh, the newest occupant of the most powerful economic seat on the planet, wants you to know two things. First, he thinks artificial intelligence is about to reshape the US economy in ways that could be genuinely historic. Second, he’s not going to tell you what he plans to do about interest rates.
The Federal Reserve chairman, who was sworn in on May 22, 2026, after being nominated by President Donald Trump on March 4, has been making the rounds with an unusually optimistic message about AI’s potential to drive productivity, expand supply, and create jobs, all without the inflationary side effects that typically accompany economic booms.
A ‘paradigm shift’ in the early innings
Warsh isn’t shy about the scale of his conviction. During participation at the ECB Forum on July 1, he described the AI revolution as a “paradigm shift” that positions the US as a potential “big winner” in terms of productivity gains.
He also said we’re in the “first or second inning” of this transformation.
