{"id":214698,"date":"2026-02-17T14:31:00","date_gmt":"2026-02-17T19:31:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/02\/17\/trumps-fed-pick-says-ai-could-push-down-interest-rates-soon-disagreements-are-already-brewing\/"},"modified":"2026-02-17T21:35:17","modified_gmt":"2026-02-18T02:35:17","slug":"trumps-fed-pick-says-ai-could-push-down-interest-rates-soon-disagreements-are-already-brewing","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/02\/17\/trumps-fed-pick-says-ai-could-push-down-interest-rates-soon-disagreements-are-already-brewing\/","title":{"rendered":"Trump\u2019s Fed pick says AI could push down interest rates soon. Disagreements are already brewing"},"content":{"rendered":"

Trump\u2019s Fed pick says AI could push down interest rates soon. Disagreements are already brewing<\/a><\/p>\n

https:\/\/www.aol.com\/articles\/warsh-says-ai-could-help-184642305.html?utm_sourceu003dspotimu0026utm_mediumu003dspotim_recirculationu0026spot_im_comment_idu003dsp_IjnMf2Jd_23501346_c_4CW0lCu0026spot_im_highlight_immediateu003dtrue<\/a><\/p>\n

Publish Date: 2026-02-17 14:31:00<\/a><\/p>\n

Source Domain: www.aol.com<\/a><\/p>\n

Kevin Warsh during The Semafor World Economy Summit in Washington, DC, on April 18, 2024. – Samuel Corum\/Bloomberg\/Getty Images<\/p>\n

Advances in AI are unlikely to push down interest rates in the short term, a key Federal Reserve official said Tuesday \u2014 a stark contrast to Fed Chair nominee Kevin Warsh\u2019s plan for slashing borrowing costs.<\/p>\n

\u201cI expect that the AI boom is unlikely to be a reason for lowering policy rates,\u201d Fed Governor Michael Barr said in prepared remarks during an event in New York.<\/p>\n

In December, Warsh, whom President Donald Trump named last month as his pick to lead the central bank after Fed Chair Jerome Powell\u2019s term ends in May, suggested that business adoption of artificial intelligence would usher \u201cin the most productivity-enhancing wave of our lifetimes.\u201d<\/p>\n

The central bank should take the same leap of faith that they did with the internet under Fed Chair Alan Greenspan and lean toward cheaper borrowing costs, he said.<\/p>\n

\"Michael\"Michael<\/p>\n

Michael Barr, member of the Federal Reserve Board, participates in a board meeting at the Federal Reserve in Washington, DC, on October 24, 2025. – Aaron Schwartz\/EPA\/Shutterstock<\/p>\n

Barr\u2019s latest remarks show there\u2019s already some disagreement brewing within the Fed\u2019s powerful 12-person rate-setting committee on how AI could change the world\u2019s biggest economy. That\u2019s crucial because Fed officials each have only one vote per person, including the chair, when they meet eight times a year to set interest rates. That means Warsh would need to get his colleagues on board with lowering rates.<\/p>\n

In his speech, Barr outlined various ways the technology could affect hiring, productivity and wages, saying he expects AI \u201cwill have a transformative effect on the economy\u201d overall.<\/p>\n

The most likely impact of AI on the economy is that \u201csome occupations are displaced while new ones emerge, as AI is increasingly integrated into many existing roles,\u201d Barr said.<\/p>\n

\u201cBut AI adoption occurs gradually enough that large and widespread…<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Trump\u2019s Fed pick says AI could push down interest rates soon. Disagreements are already brewing…<\/p>\n","protected":false},"author":1,"featured_media":214699,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s.yimg.com\/os\/en\/aol_cnn_business_articles_764\/c9538e506f49b1d479939072b856019a","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[20],"class_list":["post-214698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-artificial-intelligence"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/214698"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=214698"}],"version-history":[{"count":1,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/214698\/revisions"}],"predecessor-version":[{"id":214700,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/214698\/revisions\/214700"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/214699"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=214698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=214698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=214698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}