Fed Chair Powell Says AI Probably a Factor in Concerning Unemployment Rates

Federal Reserve Chair Jerome Powell has acknowledged that artificial intelligence (AI) may be a factor contributing to the concerning unemployment rates in the United States. Powell's comments came after the central bank decided to cut interest rates, citing a weaker than expected labor market. The Fed's decision to lower rates was influenced by the recent economic data, which showed a slowdown in job growth and a rise in unemployment. Powell suggested that the integration of AI technology into various industries could be a potential driver of this trend, as it may be replacing human workers in certain tasks. While the full impact of AI on employment is still being studied, Powell's acknowledgment highlights the growing concern about the potential disruptions caused by technological advancements. The Fed's actions aim to support the economy and address the challenges posed by the changing labor market dynamics.