It has been argued that AI could usher in "10x of the Industrial Revolution at 10x the speed." Yet, for AI to deliver on its growth potential for the economy, not just for a select group of companies, it needs to create jobs, lots of them- to generate worker income and spur consumption growth. So far, the records for growth, jobs, and productivity are unimpressive; however, to be fair, they are far from the final scorecard. In the first half of 2026, even with double-digit an

Fed Chair Warsh's term has begun with some challenges, and it's still uncertain how he intends to handle monetary policy. Forecasting plays a vital role in effective policymaking, yet Mr. Warsh has not provided his forecast and does not support maintaining the practice of delivering quarterly forecasts. Former Fed Chairman Mr. Greenspan was highly skilled in making monetary policy decisions, with one of his key strengths being his experience as a forecaster before becoming t

During the June 17 press conference after the FOMC meeting, the new Fed Chairman, Warsh, announced the establishment of five task groups. These groups will address various topics, such as Fed communications, balance sheet policy, inflation framework, employment and productivity, and data sources that assist policymakers. The proposed changes to policymakers' practices could significantly affect how the Fed plans to achieve its objectives, compelling Wall Street to adapt to a

Kevin Warsh returns to the Federal Reserve as the new Fed Chair. His return occurs at a crucial time for the Federal Reserve, as its independence has been threatened multiple times over the past year. However, Mr. Warsh's greatest challenge may be preserving the Fed's credibility. Mr. Warsh joins the Fed with controversial views on inflation measurement. Mr. Warsh advocates that policymakers move away from conventional inflation metrics and instead focus on "trimmed averages.

The surge in A. I. Investments continue to progress rapidly. Over the last year, business spending on technology equipment and software has risen by over $250 billion. This accounts for an astounding 40% of the total growth in real GDP. Despite the strength of the A. I. Investment surge, it has not yet led to a significant increase in the overall economic growth rate. The real GDP growth of 2.7% over the past year, while respectable, falls well short of the higher growth ra

Fed Chair Nominee Kevin Warsh intends to link the Fed's inflation target to median or "trimmed" price measures. These measures are a statistically manipulated version of reported inflation, creating an "alternative reality." They are the 2000s version of Arthur Burns' 1970s core inflation. If implemented, this would be the fourth time inflation measures used for policy have been dumbed down, primarily benefiting the finance sector, as it would create the impression of a lowe