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Fed Officials Debate AI's Impact on Job Market

2/25/2026

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Story summary
  • Federal Reserve Governor Lisa Cook warned at the NABE Economic Policy Conference that artificial intelligence could displace workers, especially recent college graduates.
  • She said AI may boost productivity but create challenges for monetary policy.
  • Cook noted the neutral rate might be higher than pre-pandemic levels due to AI investments.
  • Fed Governor Christopher Waller downplayed fears about AI's impact, calling them overstated.
  • The labor market remains stable, with unemployment at 4.3%.