Fed's Cook Says Productivity Gains From AI Will Deliver Modest Disinflation In Next Few Years; Signs Of Broadening Pressure In Inflation Data; Those Gains Will Not Come In Time To Offset Broadening Inflation This Year; Says She Is Highly Attentive To A Scenario In Which AI Leads To At Least A Temporary Rise In Unemployment; Limited Evidence To Date That AI Is Changing Labor Market Structure; Fed Would Have Limited Tools To Help In Such A Case; Lowering Rates Could Fuel Inflation
Fed's Cook Says Productivity Gains From AI Will Deliver Modest Disinflation In Next Few Years; Signs Of Broadening Pressure In Inflation Data; Those Gains Will Not Come In Time To Offset Broadening Inflation This Year; Says She Is Highly Attentive To A Scenario In Which AI Leads To At Least A Temporary Rise In Unemploy