Warsh revisits AI productivity case as Fed weighs rate hike

According to CNBC, Federal Reserve Chair Kevin Warsh has argued that artificial intelligence could lower costs, boost productivity and help drive a structural decline in prices, though he has not explicitly endorsed that view since taking office in May. The article says the bond market is bracing for a possible rate hike at Wednesday's Fed decision and at least one additional increase later this year, while officials debate whether AI spending and higher energy prices warrant tighter policy or whether technology-driven productivity gains will eventually ease inflation.