AXIOS (Courtenay Brown) - Fed officials warn AI's economic costs may arrive faster than benefits
Don't count on AI to solve America's inflation problem: That's the message from several Federal Reserve officials who warn that the promise of an AI-fueled productivity boom might not justify cheaper money. Why it matters: How AI shapes inflation and productivity will be a defining question for the Fed under the leadership of Kevin Warsh, who has staked out a case that the technology's supply-side benefits justify keeping rates low . - Some Fed officials say they see clearer evidence of AI-related investment boosting demand for labor, equipment and infrastructure than they do of widespread productivity gains. - The upshot: Inflation risks look more immediate than any AI-related productivity benefits, especially as inflation remains…
Don't count on AI to solve America's inflation problem: That's the message from several Federal Reserve officials who warn that the promise of an AI-fueled productivity boom might not justify cheaper money. Why it matters: How AI shapes inflation and productivity will be a defining question for the Fed under the leadership of Kevin Warsh, who has staked out a case that the technology's supply-side benefits justify keeping rates low . - Some Fed officials say they see clearer evidence of AI-related investment boosting demand for labor, equipment and infrastructure than they do of widespread productivity gains. - The upshot: Inflation risks look more immediate than any AI-related productivity benefits, especially as inflation remains…Open