New Delhi, April 22 -- Fed Chair nominee Kevin Warsh on Tuesday said artificial intelligence could prove to be the "most productivity enhancing wave of our lifetimes," but the central bank must first secure better data and resist making policy bets on gains that may not materialise.

Testifying before the Senate during his confirmation hearing on Monday, Warsh positioned AI as both an opportunity and a challenge for monetary policy, while underscoring the Fed's role in defending the dollar's dominance amid geopolitical rivalry.

Pressed on whether his interest-rate views depend on AI-driven productivity gains arriving quickly, Warsh said the supply-side impact could be large but uncertain. He warned against using AI as "an excuse for maki...