Fed nominee: AI needs better data

Fed chair nominee Kevin Warsh told senators artificial intelligence could boost productivity but the Federal Reserve needs better data before making policy bets on those gains. (cio.economictimes.indiatimes.com) Warsh made the remarks during his Senate Banking Committee confirmation hearing on April 21, 2026. (pbs.org) He called AI “the most productivity enhancing wave of our lifetimes” and warned the Fed against assuming promised gains without stronger measurement foundations. (cio.economictimes.indiatimes.com) Warsh has argued faster AI-driven productivity could lower cost pressures and justify looser policy, a position he reiterated under questioning. (wsj.com) That stance matters because the next Fed chair would weigh AI’s supply‑side effects while setting interest rates and reshaping the central bank’s communication and inflation framework. (cfr.org) Experts and audits note deploying AI for fraud detection and risk management depends on accurate, complete and timely data—shortcomings that can produce false positives or missed threats. (files.gao.gov) Consultancies and technology firms say robust data governance, lineage and validation are prerequisites for scaling AI in finance and for regulators to trust model outputs. (pwc.com) Warsh, nominated by President Trump on Jan. 30, 2026, faces a Senate confirmation process after his April 21 hearing, and Jerome Powell’s chair term ends May 15, 2026. (financialcontent.com)