Warsh Flags AI Growth Concerns, Cites Uncertainty Over Market Structure
Federal Reserve Chairman Kevin Warsh spoke at the Jackson Hole Economic Policy Symposium on August 28, 2026, marking his 100th day in office.
Warsh began by acknowledging the event's theme of innovation and its importance for delivering price stability alongside full employment.
He discussed the implications of artificial intelligence (AI) on the economy, stating that progress in AI has been faster than predicted, with potential for higher growth and substantial increases in capital investment.
Warsh noted that AI is a new variable, potentially a factor of production, which will have consequences for both the economy and monetary policy. He highlighted several unknowns regarding AI's impact, including its effect on productivity, labor usage, market structure, and return on capital.