[Federal Reserve Discussions on Artificial Intelligence Surge] Federal Reserve Chairman Warsh devoted a significant portion of his first major speech since being nominated by Trump to discussing the Fed's new focus: artificial intelligence. Warsh stated on Friday that "we have reached a turning point in history" due to AI, and that the technology could significantly accelerate economic growth. Warsh's remarks come as the Fed's view on AI has recently shifted. According to an analysis by The Washington Post, just last fall, AI was rarely mentioned in the public minutes of Fed policy meetings. This year, the technology has risen to the forefront, with AI and its ripple effects on employment, economic growth, cost of living, and the risk of a financial crisis being mentioned dozens of times. The Fed's surge in focus on AI shows that the technology is becoming increasingly important in issues closely related to the American public, policymakers, and global businesses. Claudia Sahm, a former Fed economist and now chief economist at investment firm New Century Advisors, said that by 2026, AI "will be the main thread of everything."
