Walsh, AI is calling for you to raise interest rates

In November last year, Kevin Warsh wrote in his column for The Wall Street Journal that AI would be a major deflationary force, capable of boosting productivity, enhancing US competitiveness, and doubling living standards within a generation.

However, at this year's Jackson Hole annual meeting in August, Warsh listed inflation as his primary concern, suggesting that interest rates might need to be higher.

The inflationary force that makes Warsh anxious comes precisely from the AI in which he has placed such high hopes.