Warsh Warns of AI's Economic Risks as Fed Keeps Close Eye

Federal Reserve Chair Kevin Warsh emphasized the importance of monitoring AI developments for their potential impact on the economy. Speaking after the Federal Open Market Committee raised interest rates by a quarter point, Warsh stated that 'we care very much about what's happening in artificial intelligence.'

He expressed concern about how AI will affect both the demand and supply sides of the economy, noting that roughly 5.8 million American workers are in fields with 'high exposure' to displacement from AI, according to a July report from Apollo Global Management.

Warsh also mentioned his task force on AI's impact on the economy, which should provide him with a report by the end of the year.