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‘Revolution’: Fed Chair Kevin Warsh says US likely ‘big winner’ in AI race

Businessman typing on laptop computer keyboard at desk in office. (tadamichi/Getty Images)

(NEW YORK) — Federal Reserve Chair Kevin Warsh on Wednesday voiced optimism about artificial intelligence, describing the technology as a “paradigm shift” that would likely make the United States a “big winner in the medium-term.”

“We are in the first or second inning of this revolution,” Warsh said in Sintra, Portugal, at a conference organized by the European Central Bank.

Warsh, who took the helm of the Fed last month, weighed in on the bullish side of an ongoing debate among policymakers, investors and the general public about the potential impact of AI on the labor market and wider economy.

The technology could create jobs and boost productivity, strengthening the economy of the U.S. and other nations, according to Warsh.

“This is a big paradigm shift both for the conduct of our policy and for our economies,” Warsh said. “I think the jobs will be greater. Prosperity will be stronger.”

Business investment in AI has helped drive recent U.S. economic growth, some studies show.

A surge of AI spending accounted for roughly two-thirds of gross domestic product growth over the first half of 2025, JPMorgan Asset Management found, outpacing the contribution made by hundreds of millions of U.S. consumers. Many of the nation’s largest companies have poured funds into the chips and data centers necessary to operate AI.

AI chipmakers, meanwhile, have helped deliver stock market gains this year, allowing the major indexes to overcome a lackluster stretch for many of the tech giants that previously lifted markets.

Shares of fast-rising AI chipmakers have boosted major indexes. Micron has soared 265% in value this year. Sandisk has climbed a staggering 750% over that period.

For now, however, AI has failed to achieve gains on a scale near its immense costs, some analysts previously told ABC News. A product like AI would typically generate revenue in the form of sales either direct to consumers or to third-party businesses using the technology to enhance their offerings. AI has faced challenges on both fronts, some analysts said.

Speaking on Wednesday, Warsh signaled that he expects a shift in sentiment among businesses regarding the impact of AI.

“While we might see business surveys that say ‘no big deal,’ my speculation is six months from now the surveys will be saying quite the opposite,” Warsh said.

Copyright © 2026, ABC Audio. All rights reserved.

US Army attack helicopters crashing at historically high rate amid mechanical issues

By CNN
(CNN) — The US Army’s Apache helicopters are crashing at a historically high rate amid a widespread problem with the model’s transmission, according to a CNN analysis of military accident data.The helicopter type has experienced five major crashes since October, and a deadly mishap earlier this month in Texas killed two soldiers, sparked a wildfire and led the Army to temporarily bar Apache pilots from conducting routine training flights. With that crash, fiscal year 2026 is on pace to be the second worst for Apache flight accidents since a new model of the AH-64 was rolled out in 2011.The Army announced that the pause in training flights, which exempted units deployed to the Middle East, ended Wednesday.This year’s rate of major Apache crashes — known as Class A mishaps in Army parlance, meant to represent any accident that kills or permanently disables a person or results in the loss of an aircraft or $2.5 million in damage — surpasses typical years and rivals that of the service’s most severe rate in the 2024 fiscal year, according to CNN’s review of data. The accident rate is based on the number of incidents compared to the total hours the aircraft spent flying, calculated using data that has been publicly released and flight hour estimates for the current year provided to CNN by the Army.In Fiscal year 2024 there were nine major Apache crashes amid a spike in accidents across all Army helicopter models. Army leaders ordered a special safety training initiative that year and attributed the accidents to human errors stemming from decreased experience among its pilots and an increase in training intensity and complexity after Russia’s invasion of Ukraine inspired a new focus on preparing for major conflicts.But the causes of this year’s spike are murkier. The July issue of an official Army flight safety newsletter said that just over half of this year’s Apache accidents, including more minor incidents, are primarily attributable to human error. It’s unclear how many of the most-severe crashes are due to equipment failures, but the magazine said that “a catastrophic transmission failure was noted in one Class A mishap.”CNN estimated this year’s major Apache crash rate to be approximately 6.24 per every 100,000 flying hours. Thus far in fiscal year 2026, five Class A flight mishaps involving the attack helicopter have occurred. The Apache, through August 15, had flown approximately 80,171 hours. That number combines 42,971 hours through March 31 that were listed in the internal Army safety newsletter and an estimate provided to CNN by an Army safety spokesperson that pilots had logged approximately 37,200 additional flight hours through August 15.Fiscal year 2024, by comparison, had a rate of 7.02 major crashes per 100,000 hours for the aircraft.The E-model Apache, introduced in 2011, has faced significant problems this year with its transmission that could knock out the aircraft’s tail rotor, electrical power and hydraulics, according to a pair of internal safety messages obtained by CNN. The loss of those systems can put a helicopter into a sudden spin and potentially knock out its flight controls. As of mid-July, the cause of the problems remained “under investigation,” according to a safety message released at the time.Army spokesperson Maj. Montrell Russell declined to answer questions regarding the transmission investigation or disclose any “preliminary findings” regarding the causes of this month’s deadly Texas crash at Fort Hood.“We express our deep sadness over the loss of the two Soldiers near Fort Hood,” Russell said in a statement to CNN.He said that “special controls and release protections” prevent the service from providing detailed “technical aviation information,” to include how many of this year’s crashes are related to the helicopters’ transmission.The initial April safety message, first reported by trade publication Defense One, identified 70 potentially faulty transmissions and ordered all units to stop flying affected Apaches pending repair. A follow-up message sent in mid-July said the root cause remains “under investigation” and added 10 more suspect transmissions to the no-fly list.The two safety messages combined to impact roughly a tenth of the Army’s attack helicopter fleet. In early June, an Army official told CNN that all affected Apaches remained grounded, and the Army did not answer CNN’s questions about how many, if any, have returned to flight since then.Meanwhile, the Apache’s transmission issues continue to be mentioned in Army flight documents. CNN obtained an August 14 internal Army order that formally cited the two transmission safety messages in its references for the service’s training flight pause after the Texas crash. Russell cautioned that “including these messages in safety reviews does not imply causation for any individual mishap.”The Apache’s manufacturer, Boeing, has deployed teams to Army maintenance depots to assist with inspecting and fixing the transmissions, according to the Army order.The Army and Boeing did not answer questions on how they identified the potentially faulty parts.A Boeing spokesperson confirmed to CNN that the company is “supporting the U.S. Army’s investigation to ensure the operational readiness and safety of any affected aircraft,” but referred additional questions to the Army.Davis Winkie’s work at CNN is supported by a partnership between Outrider Foundation and Journalism Funding Partners (JFP). CNN retains full editorial control of the reporting.The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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