Bessent says Fed under Warsh will keep eye on AI's impact on employment

The Federal Reserve ‍under the leadership of Kevin Warsh, ⁠President Donald Trump's nominee for Fed chair, will be watching to ‌ensure there's ‌no "timing mismatch" on employment and productivity ‌given rapid advances in artificial intelligence, US Treasury Secretary Scott Bessent said on Tuesday.

Bessent, speaking on ​video, told an ​event hosted by Brazilian investment ‌bank ‍BTG Pactual that ‍the U.S. would average 4.1% economic growth ‌in the last three quarters of 2025, and predicted nominal GDP growth could reach 6% this year, without inflation.

Bessent said ‍historically a productivity boom was accompanied by an ‍employment boom, ⁠and ⁠the U.S. Fed would be watching that carefully "just to make sure that there's not a timing mismatch."