Bangkok – Federal Reserve Chairman Kevin Warsh expressed optimism that artificial intelligence will make economies that are adept at using it more productive and wealthier, but he warned that the path ahead will be “very bumpy,” and its short-term impact on employment is still unclear.

During the annual meetings of the International Monetary Fund and the World Bank held in Bangkok on Friday, Walsh made the aforementioned remarks during a informal conversation with Kristalina Georgieva, the President of IMF.

Wash said, "What I hope you hear from me is my optimism, but this optimism is based on a serious sense of purpose." He stated that in ten years, when people look back, they will say, "This has had an extremely profound impact."

Last month, the Federal Reserve raised interest rates to the range of 3.75% to 4%, marking the first rate hike since 2023. Later on Friday, the Fed will enter a period of communication silence in preparation for its meeting on October 27th and 28th.

Wash also stated that since the interest rate hike in September, the global economy has "generally met" the central bank's expectations, but he refused to say what actions he would take at the upcoming meeting. "I will not predict the outcome of the meeting," he said.

According to CME FedWatch, traders believe that the probability of the Federal Reserve keeping interest rates unchanged is 72.3%, while most people expect a 25-basis-point interest rate hike at the December meeting.

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