Bangkok:US Federal Reserve Chair Kevin Warsh emphasized the central bank's commitment to maintaining price stability but refrained from indicating any policy decisions at its upcoming meetings this year.

According to Anadolu Agency, Warsh spoke alongside IMF Managing Director Kristalina Georgieva at the IMF-World Bank Annual Meetings in Bangkok, stating that the Fed had reduced some monetary support about a month prior. He noted that recent developments aligned with expectations and mentioned that upcoming policy decisions in October and December would consider output, employment, and inflation. Warsh emphasized a new approach at the Fed by not pre-empting these meetings.

Warsh highlighted a significant surge in investment in the US, attributing this to sound macroeconomic policies and robust microeconomic foundations. He described this as a positive development for the global economy, noting that the investment boom extends beyond artificial intelligence and provides strength to the US economy, though this momentum is not global.

He also pointed out that global economic resilience has surpassed expectations despite geopolitical tensions, with inflation remaining a common issue. Central banks, including the Fed, have engaged in synchronized monetary tightening efforts to restore price stability.

Warsh discussed the transformative potential of artificial intelligence, predicting a positive supply shock in the medium term that could increase productivity and wealth. However, he cautioned that the transition might be uneven and that the employment impact over the next 12-18 months remains uncertain. He mentioned that AI could transform monetary policymaking by aiding central banks in analyzing data and identifying economic trends.

Finally, Warsh announced that a Federal Reserve task force on productivity and jobs would hold its first field hearing on November 16 in San Francisco's Bay Area to explore these issues further.