US Federal Reserve Chair: AI is the Most Impactful Transformation in the Economy
Jerome Powell: AI is the most impactful transformation in the economy
Translated by Qiyas from الراي — Original source
Federal Reserve Chair Jerome Powell said today that the artificial intelligence boom represents the most impactful transformation for the global economy during his lifetime, forecasting a positive but obstacle-laden path that requires close monitoring by central banks.
Speaking on the sidelines of the International Monetary Fund and World Bank meetings in Bangkok, Powell said, “I believe the emergence of this new technology likely constitutes the most impactful transformation in the U.S. and global economies during my lifetime.”
The AI boom and the massive investments it attracts have become the primary driver of global economic growth and trade, pushing stock markets to sharp rallies on Wall Street and in Asia.
As a central bank official, Powell is monitoring the macroeconomic repercussions of the AI surge, which could lead to higher prices in the short term due to excessive demand and investment, he said.
He added, “But it will ultimately yield significant benefits for the global economy.”
He noted that “this technology will transform the real economy. While we may not know exactly how it will affect the labor market over the next 12 to 18 months, we can assume it will boost productivity in economies and countries that make effective use of it, and generate greater wealth.”
In contrast, the IMF warned this week of the risks the AI boom could pose to the economy and financial stability in the event of a sudden reversal in market and investment trends, amid concerns about sector profits and productivity gains.
