Senators on both sides of the aisle joined economists Tuesday in expressing skepticism of Federal Reserve nominee Kevin Warsh’s argument that an AI boom could clear the way for interest rate cuts.
“Here’s my worry: that a lot of this stuff about artificial intelligence making us more productive is a bunch of hype by people who want to sell stock,” Sen. John Kennedy, R-La., said at Warsh’s confirmation hearing. “I’d be careful there.”
Sen. Chris Van Hollen, D-Md. went further: “I find it just implausible.”
Warsh doubled down on the reasoning, telling Sen. Lisa Blunt Rochester, D-Del., that he believes the boost to “the supply side of the economy” may be “considerably bigger” than the “effect on demand.”
Lawmakers of both parties also pressed Warsh on his investments that are subject to confidentiality agreements — as well as his plans to remain independent from President Donald Trump.
For now, Warsh’s confirmation will remain stalled: Sen. Thom Tillis, R-N.C., has said he will not vote to advance the nomination to the Senate floor until the Justice Department scraps its investigation into current Fed Chair Jerome Powell.