1007 ET - As economists predict how artificial intelligence would impact the future of productivity and its relationship with downward inflationary pressure, some Fed officials have weighed in this week. Yesterday, St. Louis Fed President Alberto Musalem said it would be risky to rely on the prospect of higher productivity growth to solve the inflation problem today. This morning, Fed governor Michelle Bowman said the surge in AI-related investment may be exerting some supply chain pressures, but strong productivity growth may put some downward pressure on inflation because of lower production costs in the medium term. "Supportive supply-side policies, including less restrictive regulations and lower business taxes, will also likely favor these conditions," Bowman said at a conference in Iceland. (jessica.coacci@wsj.com)
(END) Dow Jones Newswires
May 29, 2026 10:07 ET (14:07 GMT)
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