Fed's Warsh to take stock of AI revolution as US public grows wary
SPY•Federal Reserve Chair Kevin Warsh will convene a public forum in San Francisco on AI's risks and benefits, including potential effects on inflation, jobs and growth. The three-hour meeting is the only scheduled public event among five task forces reviewing issues important to the Fed.
1. Forum weighs AI effects
Warsh will lead a three-hour public forum on Monday in San Francisco to hear stakeholders' views on AI's implications for the economy and labor market. The meeting is the only scheduled public event among five task forces he established to review issues important to the Fed.
2. Economic risks and benefits
The discussion comes as AI investment supports US growth, market gains and spending, while the data-center buildout is raising prices and drawing public concern. Fed officials have warned that deployment could disrupt employment: Governor Lisa Cook said AI could cause at least a temporary increase in unemployment, while Governor Michael Barr warned of serious short-term job-market disruptions. Warsh, who initially emphasized AI's potential to boost productivity and reduce inflation, has taken a more nuanced view of the uncertain timing and costs.
