San Francisco Fed President Mary Daly emphasized the need for the Federal Reserve to investigate whether artificial intelligence is contributing to productivity and economic growth without causing inflation or necessitating tighter monetary policies. This comes amid a broad interest from Fed officials in how AI could impact the economy, as research indicates that most analyses show limited macroeconomic effects thus far—likely due to the early stage of AI integration across various industries. Additionally, there are parallels with views from the Trump administration and some economists who suggest that AI could lead to a productivity surge reminiscent of the technology-driven growth seen in the 1990s.
San Francisco Fed examines AI’s impact on productivity and inflation
