Kevin Warsh, a new voice on the Fed, boldly predicts AI will unleash a productivity boom that justifies slashing interest rates—yet his colleagues push back, arguing AI’s current rollout is fueling inflation and demand for capital, pushing rates higher. While Warsh sees the future, his peers focus on today’s costs, creating a sharp divide in Fed thinking—and with just one vote, his vision may not steer policy anytime soon.
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