Fed’s Barr: GDP Growth Expected To 'Pick Up A Bit' In H2, From 2% Pace In H1
Risks To Achieving Inflation Target Have Increased, Labour Market Risks Have Receded - Sees Need To Recalibrate Policy; Base Case Is That Further Adjustments Likely To Be Needed - Labour Market Solid, Supported By Business Investment And Consumer Spending - Inflation Is A Key Concern; Fed Has Been 'Knocked Off Course' To Inflation Target - Doesn t See A Clear Trend Toward A Timely Return To Inflation Target - Makes Sense To Pencil In AI Productivity Boost In Medium Term, Difficult To Project How Or When - Optimistic AI Will Boost Productivity In The Longer Term - Too Early To Know If AI Will Push Up Neutral Rate - AI Buildout Likely To Be A Strong Boost To Economic Activity In Next Year Or So - Should Be Prepared For Serious Short-Term Disruptions In Labour Market From AI - Broad Productivity Gains From AI May Take Some Time
Risks To Achieving Inflation Target Have Increased, Labour Market Risks Have Receded - Sees Need To Recalibrate Policy; Base Case Is That Further Adjustments Likely To Be Needed - Labour Market Solid, Supported By Business Investment And Consumer Spending - Inflation Is A Key Concern; Fed Has Been 'Knocked Off Course' To Inflation Target - Doesn t See A Clear Trend Toward A Timely Return To Inflation Target - Makes Sense To Pencil In AI Productivity Boost In Medium Term, Difficult To Project How Or When - Optimistic AI Will Boost Productivity In The Longer Term - Too Early To Know If AI Will Push Up Neutral Rate - AI Buildout Likely To Be A Strong Boost To Economic Activity In Next Year Or So - Should Be Prepared For Serious Short-Term Disruptions In Labour Market From AI - Broad Productivity Gains From AI May Take Some Time