Fed Governors Highlight AI Risks And Opportunities: Here’s What Cook Said About AI-Caused Unemployment Spell And Inflationary Pressure
Synopsis
Cook stated that AI could drive gains in productivity across multiple sectors, but it also introduces challenges for labor markets and income distribution.
Federal Reserve Governors Lisa D. Cook and Christopher J. Waller on Tuesdayhighlighted how artificial intelligence is reshaping both productivity and central banking operations.
Speaking in separate addresses, Cook focused on AI’s potential to enhance economic efficiency, while Waller explored practical applications of AI within the Fed’s own systems.
Impact on Productivity
According to Cook, AI could drive gains in productivity across multiple sectors, but it also introduces challenges for labor markets and income distribution. The governor emphasized that policy must carefully balance innovation with societal equity.
“As such, our normal demand-side monetary policy may not be able to ameliorate an AI-caused unemployment spell without also increasing inflationary pressure.”
-Lisa D. Cook, Governor, U.S. Federal Reserve
Get updates to this developing story directly on Stocktwits.
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.