Fed Chair Kevin Warsh Says AI Will Transform Monetary Policy, Global Economy | IMF 2026

U.S. Federal Reserve Chair Kevin Warsh says artificial intelligence will fundamentally transform how central banks conduct monetary policy, calling AI one of the most consequential economic developments of his lifetime. Speaking with IMF Managing Director Kristalina Georgieva during the IMF Annual Meetings in Bangkok, Warsh explained how AI could reshape inflation forecasting, economic data analysis, productivity and employment. Warsh believes AI investment is initially boosting economic demand, potentially adding to inflationary pressures, before delivering a positive supply shock through higher productivity and greater economic efficiency. He also highlighted how advanced AI tools could help central banks interpret economic indicators more accurately and make better-informed policy decisions. However, Warsh warned that the transition could be bumpy, with uncertainty surrounding jobs, market structures and the eventual beneficiaries of AI investment. Watch the conversation to understand why Warsh believes AI could revolutionise central banking and transform the global economy over the coming decade.