Federal Reserve Chair Kevin Warsh warned that a surge in AI investment could shock the U.S. economy, adding to price pressures before expanding economic capacity. He made the remarks at the IMF and World Bank annual meetings in Bangkok, calling AI probably the most consequential change to the U.S. and global economy in his lifetime. Warsh pledged to deliver price stability amid rising energy prices and soaring AI spending, while expressing optimism about long-term economic benefits despite a bumpy path ahead.
Inflation currently sits more than a percentage point above the Fed's 2 percent target rate. Warsh noted that AI is hitting the demand side of the economy before the supply side, which contributes to near-term pressure. He declined to offer specific guidance on whether the Fed would change interest rates at its next meeting.
In other AI-related developments, Sullivan & Cromwell partnered with OpenAI to build Agreement Analyzer, an AI tool that uses GPT-6 Astra and adversarial agents to review draft agreements against firm precedents and negotiating playbooks. Meanwhile, Korean Publishers Society is demanding fair payment from Anthropic, claiming large amounts of books by Korean authors were downloaded illegally to train AI models.
Citi joined JPMorgan Chase and Bank of America in blocking AI agents from accessing customer accounts, citing protection from possible losses. The move responds to concerns that AI chatbots could move money without customer consent. On the market front, European stocks rose 0.72 percent on the Stoxx 600 amid AI optimism, with Nvidia CEO Jensen Huang defending CoreWeave's financial health despite recent selloff pressure from rising borrowing costs.
ForeStrat.AI and Evergreen Meridian formed an exclusive partnership to help registered investment advisors modernize operations, combining AI software deployment with consulting expertise. Researchers also introduced RRI, a method that improved model scores by 10.9 to 12.4 points on HealthBench Professional by using reward hacking adversaries to test rubrics before training. Complete AI Training launched plugins covering 501 occupations across eight AI assistants including ChatGPT, Claude, Microsoft 365 Copilot, Gemini, Grok, Cursor, and Kimi, offering over 8,000 plugin files.
Key Takeaways
- Fed Chair Warsh called AI the most consequential economic change of his lifetime and warned it could add to inflation before boosting capacity
- Inflation remains over 1 percentage point above the Fed's 2 percent target amid rising AI spending
- Sullivan & Cromwell partnered with OpenAI to create Agreement Analyzer using GPT-6 Astra for legal document review
- Anthropic reportedly purchased large amounts of Korean books for AI training, prompting demands for creator compensation
- Citi, JPMorgan Chase, and Bank of America now block AI agents from accessing customer bank accounts
- CoreWeave faced stock selloff pressure from rising borrowing costs despite Nvidia CEO Jensen Huang defending its finances
- ForeStrat.AI and Evergreen Meridian launched a partnership pairing AI software with consulting for RIA modernization
- RRI method improved AI model scores by 10.9 points at 9B and 12.4 points at 27B on HealthBench Professional
- Complete AI Training offers 8,000+ plugins across 501 jobs for ChatGPT, Claude, Gemini, and six other assistants
- European stocks rose 0.72 percent on Stoxx 600 amid AI investment optimism and earnings hopes
Fed Chair Warsh warns AI investment could shock the economy
Federal Reserve Chair Kevin Warsh warned that a surge in AI investment could shock the U.S. economy. He said the spending boost could add to price pressures before expanding economic capacity. Warsh spoke at meetings of the International Monetary Fund and World Bank in Bangkok. He offered no specific guidance on what the Fed might do at its next meeting.
Warsh vows price stability as AI delivers economic shock
Kevin M. Warsh, chairman of the Federal Reserve, pledged to deliver price stability amid rising energy prices and soaring AI investments. He called AI a shock to the economy but said it promises huge long-term benefits. Warsh spoke Friday in Bangkok at the annual meetings of the International Monetary Fund and World Bank. He expressed optimism about the strength and resilience of the U.S. economy.
Fed Chair Warsh says AI is most consequential change in his lifetime
Federal Reserve Chairman Kevin Warsh spoke with Kristalina Georgieva, the managing director of the International Monetary Fund, about AI's impact. He described AI as probably the most consequential change to the U.S. and global economy in his lifetime. The discussion took place in Bangkok during IMF-World Bank annual meetings. Warsh acknowledged both the promise and challenges of the new technology.
Fed Chair Warsh warns of AI shock, pledges to contain inflation
Federal Reserve Chair Kevin Warsh warned of a potential shock to the U.S. economy from rising AI spending. He spoke in Bangkok at a conference organized by the International Monetary Fund. Warsh said AI is hitting the demand side of the economy before the supply side. Inflation stood more than a percentage point higher than the Fed's target rate of 2 percent.
Warsh says AI path will be bumpy but good for wealth
Federal Reserve Chairman Kevin Warsh spoke Friday in Bangkok at the IMF-World Bank Annual Meetings. He called AI probably the most consequential change to the U.S. and global economy in his lifetime. Warsh expressed optimism that AI will make economies more productive and wealthier but warned the path would be very bumpy. He declined to offer clues on whether the Fed would change interest rates that month.
ForeStrat.AI and Evergreen Meridian partner to modernize RIA operations
ForeStrat.AI and Evergreen Meridian formed an exclusive partnership to help RIAs modernize operations. Evergreen Meridian leads planning and project management while ForeStrat provides AI software and platform deployment. The joint offering includes transformation roadmaps, program management, automated data reconciliation, and AI-powered document extraction through FinSight. The partnership is effective immediately and combines decades of experience in trading, technology, and financial services transformation.
ForeStrat.AI and Evergreen Meridian team up for RIA transformation
ForeStrat.AI and Evergreen Meridian launched an exclusive partnership pairing AI software with consulting expertise for RIAs. The collaboration brings strategy, delivery, and technology together under one team. Evergreen Meridian handles transformation program management drawing on experience in regulated environments. ForeStrat contributes its platform and software build capabilities, with founders who previously built Foreseer, acquired by S&P Global in 2022.
Sullivan and Cromwell creates AI tool for agreement review
Sullivan & Cromwell partnered with OpenAI to develop Agreement Analyzer, an AI tool for reviewing draft agreements. The tool integrates firm precedents, negotiating playbooks, and ChatGPT Enterprise into a single review workflow. Lawyers can add selected precedents and playbooks, then run multiple review cycles that identify potential issues and return proposed changes. The tool uses adversarial agents to review agreements and make findings transparent, and it leverages GPT-6 Astra for improved reasoning.
New method improves recursive self-improvement for AI models
Researchers introduced RRI, Recursive Reward Improvement, to address problems with model-generated rubrics in self-improvement loops. The approach uses a reward hacking adversary to test and repair rubrics before a solver model trains on generated tasks. On HealthBench Professional, RRI improved scores by 10.9 points at 9B and 12.4 points at 27B compared to the baseline. The 27B model also improved on PRBench Hard and ProfBench without seeing tasks from those benchmarks.
AI data center stocks face pressure from rising interest rates
Investors continue pouring into AI companies based on the belief that data center builders would be immune to higher borrowing costs. CoreWeave's selloff revealed a pressure point as climbing borrowing costs hit the sector. The stock decline highlights growing concerns about the riskiest corner of the AI trade facing higher rate pressures.
Korean Publishers Demand Payment for AI Training Books
The Korean Publishers Society is calling for fair payment for creators after Anthropic reportedly bought large amounts of books by Korean authors. The group says illegal digital copies were downloaded to train AI models. They have drafted a document calling for compensation.
Citi Joins Banks Blocking AI Agents From Accounts
Citi has become the latest US bank to restrict AI agents from accessing customer accounts. The bank says it is protecting customers from possible losses. Other banks like JPMorgan Chase and Bank of America have taken similar steps. AI chatbots could move money to higher-yielding accounts without customer consent.
European Stocks Rise on AI Optimism and Earnings Hopes
European stocks closed higher on Friday as investors felt positive about AI investments and upcoming earnings reports. Nvidia CEO Jensen Huang defended the financial health of AI supplier CoreWeave. The pan European Stoxx 600 climbed 0.72 percent. Defence stocks also gained as EU leaders met in Brussels to support Ukraine.
RSIFlow Framework Improves AI Agent Self-Improvement
RSIFlow is a new framework that helps large language model agents improve themselves through adaptive workflows. It diagnoses performance problems and selects specific improvement workflows. The meta-agent evolves its own tools based on results. Experiments across six benchmarks show RSIFlow achieves top performance.
Complete AI Training Launches Plugins for 501 Jobs
Complete AI Training now offers AI plugins for 501 occupations across eight AI assistants. Each plugin includes skills, prompts, AI agents, and setup guides for one job. The plugins work with ChatGPT, Claude, Microsoft 365 Copilot, Gemini, Grok, Cursor and Kimi. The library contains over 8,000 plugin files and is available in English.
Sources
- Fed Chair Kevin Warsh warns of AI investment ‘shock’
- Warsh Vows Price Stability as A.I. Delivers ‘Shock’ to Economy
- Fed chair Warsh says AI is likely 'most consequential change' to the economy 'in my lifetime'
- Fed Chair Kevin Warsh warns of AI 'shock' for economy, pledges to contain inflation
- Fed's Warsh says AI path will be 'very bumpy' but ultimately 'very good' for wealth
- ForeStrat.AI and Evergreen Meridian partner to transform investment operations for RIAs
- ForeStrat.AI and Evergreen Meridian partner to transform investment operations for RIAs
- Sullivan & Cromwell brings legal expertise into agreement review
- Recursive Reward Improvement via Adversarial Meta-Prompt Evolution
- The Riskiest Corner of the AI Trade Is Crashing Into Higher Rates
- Korean Publishers Demand AI Firms Pay for Books Used in Training
- Citi becomes latest US bank to restrict AI agents from accessing accounts
- European equities close higher on AI optimism
- RSIFlow: Adaptive Self-Improvement Workflows with an Evolving Meta-Agent
- Complete AI Training Now Offers AI Plugins for 501 Occupations Across Eight AI Assistants
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