The Federal Reserve has appointed venture capitalist Marc Andreessen to a working group tasked with exploring how artificial intelligence could reshape the economy. Andreessen is one of three co-chairs of the 'Productivity and Jobs' group, which was announced on July 9, 2026. The group aims to study the effects of new foundational technologies, including AI, on economic dynamics. Alongside Andreessen, the group is co-chaired by Stanford economist Charles I. Jones and Microsoft executive Asha Sharma. Andreessen also serves on Trump's President's Council of Advisors on Science and Technology.
Fed Chair Kevin Warsh believes AI could act as a 'significant disinflationary force,' as stated in a Wall Street Journal op-ed from November 2025. His reasoning is that widespread AI adoption could boost productivity and expand the economy's output potential, potentially easing price pressures and allowing the Fed to lower interest rates. However, the logic is not without challenges. Higher expected incomes and stronger investment demand could also push up the neutral interest rate. Warsh acknowledged, according to Reuters, that the Fed cannot yet reliably measure the productivity impact of AI.
Some Fed officials and economists caution that initial AI infrastructure development may drive up demand for capital, chips, energy, and raw materials, creating price pressures before broader productivity gains materialize. Deutsche Bank estimates, according to Reuters, that cumulative AI data center investment could exceed four trillion dollars by 2030. Fed Governor Michael S. Barr warned in a February 17, 2026, speech that the AI boom is unlikely to justify lowering policy rates in the near term. However, Barr expects positive productivity effects over the long term.
Source: thedecoder
