AI Boom: Trump Team's Economic Plan

0:00Here's more world news from March 1st. President Donald Trump and his team believe artificial intelligence can spark an economic boom like the internet did in the 1990s. They want to replace Federal Reserve Chair Jerome Powell with nominee Kevin Worsh to cut interest rates and boost growth without fueling inflation. Treasury Secretary Scott Besson says this could unleash productivity gains similar to back then. In the mid-1990s, Fed Chair Alan Greenspan kept rates low despite rising wages betting on hidden productivity jumps from tech investments. That decision helped drive growth above 4% annually from 1997 to 2000 drop unemployment to 3.8% and keep inflation under 2%. Many economists push back hard on this comparison. They argue the Trump team's story overlives key details from the 90s boom and ignores today's challenges like huge federal deficits in trade, barriers from tariffs, recent productivity spikes in the second and third quarters of 2025 live promising with some

1:02linking them to early AI use. But others say it's more from pandemic era automation and AI's full impact will take years as companies train workers and adapt. Fed officials like Chicago Fed President Austin Gools B. Note Greenspan avoided rate hikes not cuts during that era. With debt projected at 120% of GDP by 2035 and less globalization, they doubt AI alone justifies lower rates now. Thanks to our sponsor for supporting today's coverage, headphones in a pillow. Once you try it, it just makes sense.