Fed Official John Williams Says AI-Driven Productivity Impact on Rates Is Unclear

New York Fed President John Williams said the effect of productivity gains on interest rates and monetary policy remains unclear. He said the impact depends on the nature of the change in trend productivity growth and how long it is expected to last. Williams added that officials are assessing how artificial intelligence could influence inflation and the labor market, two key factors in monetary policy decisions, in remarks reported on May 28.

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