Feb 18, 2026 Latest Videos from Bloomberg Radio
Moody's Analytics chief economist Mark Zandi said that the impact of AI is starting to 'kick in' across the economy, particularly in hiring rates and in the tech sector. Zandi also talked about efforts to create more affordable housing, saying that it while congress is taking positive steps, it will take awhile for the US to find its way out.

[S]ome Federal Reserve officials have begun suggesting in recent days that productivity growth from artificial intelligence could mean higher interest rates, a view that would put them at odds with the Trump administration and its nominee to lead the US central bank.
“I expect that the AI boom is unlikely to be a reason for lowering policy rates,” Fed Governor Michael Barr said Tuesday in remarks prepared for a speech in New York.
Barr’s comments followed remarks from Fed Vice Chair Philip Jefferson, who argued in a Feb. 6 speech that “all other things being equal, persistent increases in productivity growth are likely to result in an increase in the neutral rate, at least temporarily.”
AI and productivity are likely to take on increasing importance this year in debates over interest rates as President Donald Trump continues to put pressure on the Fed to reduce borrowing costs. The central bank cut its benchmark rate three times in 2025, but held it steady at its last policy meeting in January. Investors currently don’t expect another rate cut before midyear, according to futures.
Kevin Warsh, Trump’s nominee to take over as Fed chair when Jerome Powell’s term expires in May, has echoed administration officials in arguing AI could unleash a productivity boom that will allow for non-inflationary growth, and lower rates to accompany it.