Federal Reserve governor Lisa Cook said on Feb. 24 that artificial intelligence could have “profound implications for monetary policy.”
Fed governor Michael Barr warned that AI may deeply disrupt the job market.
Meanwhile, Richmond Fed president Tom Barkin pushed back against apocalypse scenarios. “It’s got potential on the other side too,” he said.
Suddenly, AI is in the mainstream of Federal Reserve policy talk.
The debate within the Fed is currently centered on whether AI will boost productivity, already on an upswing, and lead to lower inflation. There’s also an acknowledgement by many Fed officials that, in the short term, AI could disrupt the job market, creating a predicament for policymakers.