AI and the Federal Reserve’s Dual Mandate: Impacts Explored

Artificial Intelligence (AI) is transforming various sectors, and its influence on economic policy is becoming more evident. The Federal Reserve, responsible for fostering price stability and maximum employment, is now considering AI’s impacts on its dual mandate. Recently, Vice Chair Jefferson highlighted AI’s potential effects on employment and price stability, sparking a broader discussion about AI in economic strategy. This highlights AI’s growing significance in shaping economic conditions and necessitates an examination of its potential implications on policy development.