Fed’s Warsh says AI path will be ‘very bumpy’ but ultimately ‘very good’ for wealth

Warsh said he’s optimistic that AI will make economies that use it well more productive and wealthier, warning the road there will be “very bumpy.”

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  • Fed Chair Kevin Warsh, in his speech Friday in Bangkok, said he’s optimistic that artificial intelligence will make economies that use it well more productive and wealthier.
  • He warned the road there will be “very bumpy,” and its near-term effect on jobs and the real economy is unknown.

Kevin Warsh, chairman of the US Federal Reserve, during the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, on Thursday, Oct. 15, 2026. Sirachai Arunrugstichai | Bloomberg | Getty Images

BANGKOK — Federal Reserve Chairman Kevin Warsh said he’s optimistic that artificial intelligence will make economies that use it well more productive and wealthier, though he warned the road there will be “very bumpy” and its near-term effect on jobs is unknown.

Warsh spoke at a fireside chat with the International Monetary Fund’s managing director, Kristalina Georgieva, as part of the weeklong IMF-World Bank Annual Meetings in Bangkok on Friday.

“I want you to hear from me optimism, but optimism leavened by the seriousness of purpose,” Warsh said. A decade from now, he said, people will look back “and say this was hugely consequential.”

The Fed raised rates to a range of 3.75% to 4% last month, its first hike since 2023. A communication blackout period starts later Friday, ahead of its Oct. 27-28 meeting.

Warsh also said the global economy has “broadly conformed” to the central bank’s expectations since its September rate increase, but he declined to say what he will do at the coming meeting. “I don’t prejudge meetings,” he said.

Traders see a 72.3% chance for the Fed to keep the interest rate unchanged, according to CME Fed Watch, while the majority expect a 25 basis point hike at the December meeting.

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