Kevin Warsh says AI surge could enable ongoing Fed rate cuts; Trump seeks 1%

On February 5, 2026, coverage highlighted Kevin Warsh’s view that an AI-fueled productivity surge could let the Fed lower rates over time without reigniting inflation. Trump allies back aggressive easing toward a 1% policy rate from the current 3.5–3.75% range, while several economists caution that AI’s benefits may lag demand, risking inflation.