Fed Chair Jay Powell recently shared his thoughts on how the AI boom is affecting the U.S. economy. He acknowledged that everyone is trying to understand the changes AI might bring.
Powell noted that while AI has incredible potential, it also raises concerns. Historically, every technological advancement creates job shifts—some positions vanish, while new ones emerge. This pattern follows us through time, and technology often boosts productivity, which can lead to higher wages.
However, he pointed out some immediate challenges. For instance, there seems to be a link between AI and the hiring difficulties recent college grads face. Companies are cutting back on hiring or even laying off workers, often citing AI as a reason.
Recent surveys highlight this trend. A report from the World Economic Forum found that by 2025, machines and algorithms could displace 85 million jobs, but they’re expected to create 97 million new roles. The key is to adapt to the changes.
As we navigate this shift, it’s crucial to stay informed. Experts are working to analyze the broader economic impacts of AI. Powell emphasized the need for continuous research to address the implications of these changes. Understanding how these dynamics will unfold is a collective challenge we face moving forward.
For more insights on AI’s impact on the economy, you can check the World Economic Forum.
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