WALSH: WHETHER AI LEADS TO INFLATION DEPENDS ON THE FED

ON 15 JULY, FEDERAL RESERVE CHAIRMAN WALSH INDICATED THAT ARTIFICIAL INTELLIGENCE WAS EXPECTED TO PUSH UP THE OBSERVABLE PRICE LEVELS OVER THE NEXT 12 MONTHS, AND WHETHER AI WOULD LEAD TO INFLATION DEPENDED ON THE FED. HE BELIEVED THAT ARTIFICIAL INTELLIGENCE WAS A LONG-TERM JOB CREATOR AND COULD HAVE DESTABILIZING EFFECTS. WITH REGARD TO THE SHORT-TERM EFFECTS OF ARTIFICIAL INTELLIGENCE, WALSH STATED THAT THERE WAS NO GUARANTEE THAT EMPLOYMENT WOULD NOT BE SUBVERSIVE OR REASSURING. “THE PRICE HIKE CAUSED BY ARTIFICIAL INTELLIGENCE IS REAL, AND I DON'T WANT TO DOWNPLAY IT”, HE SAID. KIM XIAN