Macro Unverified First seen 2026-10-16 13:19 UTC

Fed Chairman Warsh says AI will fundamentally change monetary policy conduct

Federal Reserve Chairman Kevin Warsh said AI is going to "fundamentally change the conduct of monetary policy" by improving forecasts. He said models currently used to find underlying inflation trends amount to torturing data, and that this will change "not so long from now."

Why “Unverified”

Reported by Nick Timiraos (WSJ) alone, with no second source or primary confirmation yet

1 independent source group across 1 post · evidence score 68/100. How labels work

What the sources claim

Fed Chairman Kevin Warsh says AI will fundamentally change how monetary policy is conducted by improving forecasts.

“Fed Chairman Kevin Warsh says AI is going to "fundamentally change the conduct of monetary policy" by improving forecasts.”
Nick Timiraos (WSJ)
Warsh says current practice of using old-fashioned models to find underlying inflation trends amounts to torturing data, and that this will soon change.

“"We torture data with old-fashioned models to try to find out what's underlying inflation trends. Not so long from now, it won't be torture."”
Nick Timiraos (WSJ)

Sources

Nick Timiraos (WSJ) newswire 2026-10-16 13:19 UTC
Fed Chairman Kevin Warsh says AI is going to "fundamentally change the conduct of monetary policy" by improving forecasts.

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Summary and claims extracted by AI with prompt analyze-story@5 on 2026-10-18 00:00 UTC. Labels are computed from the sources, not by the model.