🚨 Warsh in Bangkok: Optimistic About AI’s Long-Term Potential, Leaves Further Rate Hikes Open Federal Reserve Chair Kevin Warsh addressed artificial intelligence, inflation, and upcoming interest-rate decisions during the IMF–World Bank Annual Meetings in Bangkok: 🔹 AI could bring profound economic change Warsh described AI as potentially one of the most consequential developments for the U.S. and global economies in his lifetime, with the potential to boost productivity and create greater wealth. 🔹 Significant long-term potential, but near-term pressures remain The AI boom is driving investment and demand while pushing up some prices. Future efficiency gains are promising, but current inflationary pressures also warrant attention. 🔹 The transition could be bumpy AI’s near-term impact on employment remains uncertain. The shift toward a more productive economy could involve ongoing adjustments and volatility. 🔹 Reaffirming the commitment to price stability Discussing September’s rate hike, Warsh described it as a step toward reducing monetary accommodation and restoring price stability. 🔹 No clear signal on the next rate hike He offered no explicit guidance on whether the Fed would raise rates again at its October 27–28 meeting, nor did he declare that rate hikes were over for the year. The October and December meetings remain key opportunities to assess conditions and determine the next move. With the latest U.S. inflation figures coming in above expectations, whether the Fed will continue raising rates remains a central question for markets. #oncoin#