Comments from Fed Governor Michael Barr in a speech:
-
Prudent for Fed to take time, look at data, before changing policy again.
-
Wants to see more evidence inflation ebbing to 2% target.
-
Still sees ‘significant risk’ inflation will stay over 2%.
-
Reasonable to think price pressures will further cool.
-
Job market in balance but vulnerable to shocks.
-
Recent data points to stabilizing job market.
-
In long run AI should boost productivity and living standards.
-
AI boom unlikely to lead to lower Fed interest rates.
-
Should be prepared for AI to disrupt labor markets.
-
Little evidence so far AI is driving up unemployment.
-
Outlook suggests Fed will hold rates steady for some time.
I’m more interested in the comments on AI than monetary policy as it’s revealing about how the Fed is thinking about it
