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Fed must dig deep on AI impact to make right rate calls ahead, Daly ...
Federal Reserve officials differ on AI's potential to boost productivity and influence interest rates, with some seeing short-term limits and others predicting major economic shifts.
- On Tuesday, Fed Governor Michael S. Barr said he expects the AI boom is unlikely to be a reason for lowering policy rates, according to prepared remarks in New York.
- Warsh, President Donald Trump's Fed chair nominee, urged policymakers in December to take a Greenspan-style leap toward rate cuts, citing AI's productivity potential.
- Barr detailed specific channels by which AI could affect hiring, productivity and wages and said it will have a transformative effect on the economy, providing concrete grounds for debate among officials.
- Practically, lowering rates requires Warsh to get his colleagues' support, as Fed officials each have one vote and meet eight times a year to set rates.
- Coverage remains ongoing and the dispute has put the Fed's 12-person rate-setting committee on notice, as Barr's remarks show disagreement over AI's impact on policy. This is a developing story.
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18 Articles
Fed must dig deep on AI impact to make right rate calls ahead, Daly says
Feb 17 : The Federal Reserve must dig deep on the data to assess whether artificial intelligence is boosting productivity growth and enabling faster economic growth without igniting inflation or requiring the Fed to tap the brakes with tighter policy, San Francisco Fed President Mary Daly said on Tuesday.The
·Singapore
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Warsh says AI could help the Fed lower interest rates. Disagreements are already brewing
Advances in AI are unlikely to push down interest rates in the short term, a key Federal Reserve official said Tuesday — a stark contrast to Fed Chair nominee Kevin Warsh’s plan for slashing borrowing costs.
·Atlanta, United States
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Coverage Details
Total News Sources18
Leaning Left2Leaning Right0Center9Last UpdatedBias Distribution82% Center
Bias Distribution
- 82% of the sources are Center
82% Center
L 18%
C 82%
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