San Francisco Federal Reserve President Mary Daly stated that U.S. monetary policy is ‘slightly restrictive’ due to ‘exceedingly strong’ investment growth in AI-related technology and a stable labor market.
Uncertainty Around AI’s Impact
Daly expressed uncertainty around the impact of AI on the economy, which holds her back from rushing on an interest rate decision. ‘You don’t want to react quickly when the world is changing quickly,’ she said. ‘You want to assess before you jump or act because you’ll make better decisions.’
The U.S. Bureau of Labor Statistics released data showing U.S. job growth slowed sharply last month. Traders reacted by exiting bets on a Fed rate hike later this month and reducing bets on a rate hike in September.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
