US Edition
Federal Reserve governor warns AI could lead to rise in unemployment rate
Fed Governor Lisa Cook highlighted AI's potential to increase structural unemployment and limit the Federal Reserve's ability to control inflation despite productivity gains.
- On Tuesday, Federal Reserve Governor Lisa Cook warned AI has triggered a generational shift in the U.S. labor market and could raise unemployment that the Fed may not offset with lower rates at the National Association for Business Economics conference in Washington, D.C.
- Pointing to changes in computer coding occupations, Cook said AI is reorganizing work and may displace entry-level workers before new jobs emerge, warning of early job displacement.
- Cook said `We appear to be approaching the most significant reorganization of work in generations` and warned a productivity boom means rising unemployment may not indicate increased slack.
- Federal Reserve would face tradeoffs between unemployment and inflation, and Cook warned that using demand-side policies risks higher inflation, so education and workforce policy may be better suited.
- She warned an AI investment boom may raise the neutral rate of interest short-term but could lower it over time if gains concentrate, fueling an emerging Fed debate.
16 Articles
16 Articles
Federal Reserve governor warns AI could lead to rise in unemployment rate
Federal Reserve governor Lisa Cook on Tuesday warned of the dangers created by artificial intelligence emerging in the labor sector. Cook said the use of AI could cause “job displacement” while preceding “job creation” and causing unemployment rates to rise as the labor force declines. “This outcome could cause hardship for many workers and their…
The Fed’s AI Reckoning: Governor Cook Warns of Short-Term Job Losses Even as Productivity Gains Loom Large
Federal Reserve Governor Lisa Cook delivered one of the most candid assessments yet from a senior U.S. central banker on the economic implications of artificial intelligence, warning that the technology could trigger short-term unemployment even as it promises to reshape productivity and economic growth over the longer term. Her remarks, delivered on February 24, 2026, signal that the Fed is actively grappling with how AI-driven disruption will …
Coverage Details
Bias Distribution
- 57% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
