Kevin Warsh urges rate cuts, cites AI amid Iran concerns
Kevin Warsh, Trump's pick to lead the central bank, is calling for interest rate cuts.
He's betting that AI will soon make workers more productive and help cool down inflation.
But not everyone's convinced: some worry global issues like the Iran conflict could actually push prices higher instead.
Alan Greenspan comparison meets skepticism
Warsh's approach reminds folks of the 1990s when Alan Greenspan held rates steady during the internet boom, hoping tech would keep inflation low.
But today's economy is a different beast: inflation is above target and government deficits are rising.
Plus, Fed officials warn that AI might actually drive up demand and prices, especially with ongoing trade tensions and supply chain hiccups.
Warsh faces his confirmation hearing on Tuesday, April 21.