Trump Expects Fed Pick and AI to Boost Economy

President believes new Fed leadership and AI can drive economic growth like the 1990s

Published on Mar. 2, 2026

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President Donald Trump, his Treasury secretary, and his choice to lead the Federal Reserve believe they can drive the U.S. economy to grow like it did in the 1990s. They are putting their faith in artificial intelligence to duplicate the productivity gains that fueled that period of economic expansion.

Why it matters

The Trump administration is taking an unorthodox approach to economic policy, relying on a new Fed chair and emerging technologies like AI to spur growth. This marks a departure from traditional monetary policy tools and could have significant implications for the economy if successful or not.

The details

The administration believes that by appointing a new Federal Reserve chair who is more open to rate cuts and leveraging the productivity gains of AI, they can replicate the economic boom of the 1990s. However, some economists warn that the factors driving growth in the 1990s, such as the tech revolution and globalization, may not be easily duplicated today.

  • President Trump nominated his choice for Federal Reserve chair in January 2026.

The players

President Donald Trump

The 45th President of the United States who is pushing an unorthodox economic policy agenda.

Federal Reserve

The central banking system of the United States that sets monetary policy, including interest rates.

Artificial Intelligence (AI)

An emerging technology that the Trump administration believes can drive productivity gains and economic growth.

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The takeaway

The Trump administration's economic strategy represents a high-risk, high-reward approach that departs from traditional policy tools. If successful, it could spur a period of rapid growth, but if it fails, it could have serious consequences for the economy.