Kevin Warsh, the former Federal Reserve governor who Donald Trump has nominated to head the US central bank, has, like other candidates in the race to succeed chair Jay Powell, claimed that American interest rates ought to be lower.
A big reason why, Warsh says, is an AI boom that he believes is “the most productivity-enhancing wave of our lifetimes — past, present and future”, leaving the Fed space to cut rates without stoking inflation.
The Fed nominee believes he can afford to take a chance on those productivity gains in the same way former chair Alan Greenspan did in the 1990s.
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