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2026-05-29 22:10:54
[Fed Officials Share Views on AI Productivity] As economists predict how artificial intelligence (AI) will impact future productivity and its relationship to downward pressures on inflation, some Federal Reserve officials shared their views this week. Yesterday, St. Louis Fed President Alberto Musaleem stated that relying on the prospect of higher productivity growth to address current inflation problems would be risky. This morning, Fed Governor Michelle Bowman said that while the surge in AI-related investment may be putting some strain on supply chains, strong productivity growth could exert some downward pressure on inflation due to lower production costs in the medium term. "Supportive supply-side policies, including reducing restrictive regulations and lowering corporate taxes, could also benefit these situations," Bowman said at a conference in Iceland.
