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Cook, An Update on AI and the Economy

Federal Reserve (Speeches & Testimony)

Sep 28, 2026

9/28/2026

AI Investment May Delay Inflation Returning to Target While Supporting a Modest Disinflation Timeline

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.


9/28/2026

Inflation Impact Of AI Productivity Depends On Diffusion Across Firms, Wage Transmission, And Labor Market Adjustment, Not Just Productivity Gains

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.


9/28/2026

AI-Driven Labor Displacement Highlights Training And Job Redesign As Primary Economic Adjustment With Limited Fed Action Through Rate Cuts

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.


9/28/2026

Small Business AI Adoption Could Boost Productivity And Drive Broader Macroeconomic Benefits.

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.