Updated
Updated · Bloomberg · Aug 10
Warsh Forms AI Data Task Force to Sharpen US Inflation and Growth Measures After 1 Shutdown
Updated
Updated · Bloomberg · Aug 10

Warsh Forms AI Data Task Force to Sharpen US Inflation and Growth Measures After 1 Shutdown

3 articles · Updated · Bloomberg · Aug 10

Summary

  • Kevin Warsh has assembled a Federal Reserve task force to improve the quality and speed of US economic indicators, aiming to give policymakers better readings on inflation and growth.
  • AI is central to the effort because it can rapidly turn new streams of information into alternative measures that go beyond traditional gauges such as the CPI.
  • The push follows a period of strain in federal statistics: Trump fired the BLS commissioner, about one-third of the bureau’s senior leadership left, and the longest-ever government shutdown disrupted data collection.
  • That backdrop has turned once-obscure questions about statistical quality into a policy priority, with the Fed seeking more reliable, real-time signals for interest-rate decisions.

Insights

Could the Fed's shift to AI and corporate data make interest rate decisions faster, or just dangerously volatile?
Will relying on real-time private metrics secretly shift the Federal Reserve's power away from traditional government statistics?