UBS On-Air: Paul Donovan Daily Audio 'Prices and productivity'

Federal Reserve Chair Warsh testified to Congress—at times sounding like a Bundesbank member, with a vehement denunciation of inflation. Warsh was keen to say the Fed was solely responsible for inflation—that is challenged by Fed research ascribing roughly 1ppt of last year’s inflation to US tariffs. Warsh also displayed a troubling fascination with the productivity pixie of artificial intelligence—technology is not a reliable driver of macroeconomic productivity, and believing that might result in policy mistakes.