The Fed Chair Says AI Is Moving Faster Than Even Its Believers Predicted Federal Reserve Chair Kevin Warsh's recent remarks at Jackson Hole have sparked a crucial conversation about the role of artificial intelligence in the economy.
On August 28, 2026, Warsh suggested that AI may be more than just a buzzword or a tool – it could be a fundamental driver of growth, akin to labor, capital, and land.
Warsh's words carry weight because they hint at a seismic shift in the Fed's understanding of the economy. Policymakers have traditionally relied on models assuming these four inputs combine in predictable ways.