Warsh: AI surge may drive growth

Federal Reserve Chairman Jerome Powell stated that the AI boom could boost economic growth in the medium term by initially increasing demand and then providing long-term supply-side benefits. He confirmed that this technology will create a positive shock to both the U.S. and global economies, but he noted that the transitional phase will pose challenges for employment and market restructuring. Monetary policies should evaluate their impact on inflation and financial stability. Powell also emphasized that the Fed is committed to maintaining price stability, with external teams studying the implications of AI amidst ongoing efforts to monitor its developments and future economic effects.

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