’90s nostalgia seizes the Fed and White House as Warsh and Trump see AI as an internet-style productivity boom

President Donald Trump, his Treasury secretary and his choice to lead the Federal Reserve believe they can coax the U.S. economy into partying like it’s 1999.

They are putting their faith in artificial intelligence to duplicate what happened when another technology arrived in the 1990s: the internet. Back then, the American economy surged as businesses became more productive, unemployment tumbled and inflation remained in check.

Trump is confident that his nominee to become Fed chair...