Federal Reserve Chair Kevin Warsh has indicated that, while Fed officials are increasingly open to the potential deflationary impacts of artificial intelligence, the current level of inflation remains unacceptably high.
Warsh stated, "Price stability is the core work for all of us. It may not be our only task, but the strongest consensus I've heard over the past few days is that everyone remains open-minded on issues related to AI and productivity. However, looking around us, we can see that the prices of various goods are still elevated."
Despite growing market optimism that artificial intelligence could boost growth on the supply side of the economy, Warsh maintains that curbing inflation is the Federal Reserve's primary objective.
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