Who will lead the Fed? Squawk Box Asia discusses the 2026 challenges ahead

Economic Outlook - The Federal Reserve's decision-making process is under scrutiny, particularly regarding interest rates and potential rate cuts [1][2] - The recent jobs data has been delayed due to a government shutdown, which may impact the Fed's policy decisions [2][6] - There is a growing concern about the implications of tariffs and their effect on small businesses and the job market [3][4] Artificial Intelligence Impact - Jerome Powell highlighted the potential of artificial intelligence (AI) to enhance productivity, which could help the Fed navigate current economic challenges [7][10] - The productivity growth in the U.S. has been strong at around 2%, but the actual impact of AI on inflation and job markets remains uncertain [8][9] Political Context - The decline in the president's approval rating from 47% to 39% could have significant implications for economic policy and market volatility [11][12] - The upcoming midterm elections may influence the urgency of addressing economic issues, including job market conditions and interest rates [5][6]