00:00It's Benzinga bringing Wall Street to Main Street.
00:02Federal Reserve officials are debating how artificial intelligence will affect
00:06unemployment and inflation as companies adjust staffing and investment plans, according to
00:11Reuters. Locke said it will cut 40% of its workforce, about 4,000 jobs, citing changes
00:17in how it uses labor due to AI. Some officials warn that AI may raise structural unemployment
00:22while keeping price pressures elevated through higher wages for remaining workers and heavy
00:27capital spending. Adam Posen, president of the Peterson Institute for International Economics,
00:31said AI is boosting incomes and investment without lowering inflation, and he expects
00:37price pressures to rise rather than fall in the near term. Fed chair nominee Kevin Walsh
00:41argued AI could lower inflation and justify rate cuts. Policymakers said productivity appears
00:47higher but are not ready to credit AI alone or adjust rates.
00:51For all things money, visit Benzinga.com.
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