Fed Probes AI's Impact on Productivity, Inflation, and Jobs
Rachana Saha
The Federal Reserve is investigating AI's impact on productivity, inflation, and the labor market, acknowledging significant AI investments.
Jerome Powell emphasized uncertainties on whether artificial intelligence will eliminate, augment, or create jobs, stating it's too early to predict.
Powell acknowledged the limited influence of central banks like the Fed on AI's technological shifts.
The Fed is actively researching various AI forms beyond generative AI to understand potential economic impacts.
IMF predicts AI could impact up to 60% of jobs in advanced economies, potentially lowering labor demand and wages in sectors like finance and insurance.