Cook, An Update on AI and the Economy · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Sep 28, 2026
AI investment could prolong inflation and keep rates higher before productivity gains eventually create disinflation, posing near-term challenges for rate-sensitive businesses and investors.
Cook, An Update on AI and the Economy · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Sep 28, 2026
AI-driven productivity may reduce inflation only if expanded supply outpaces the demand, investment, wealth, and markup effects it creates; the outcome hinges on diffusion, competition, wage transmission, and labor-market adjustment.
Cook, An Update on AI and the Economy · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Sep 28, 2026
AI adoption has not yet caused broad labor-market disruption, but emerging losses in entry-level and task-specific jobs could create a skills mismatch that interest-rate cuts would not solve and might worsen inflation; worker retraining, job redesign, complementary roles, and monitoring job creation versus displacement are therefore crucial.
Cook, An Update on AI and the Economy · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Sep 28, 2026
AI’s economic benefits may extend beyond major technology firms as small businesses increasingly adopt AI, report productivity gains, and potentially lower startup costs; however, broad macroeconomic impact depends on complementary investments in training, organizational redesign, and competitive access to models.