Fed’s Paulson Says Productivity Gains From AI Still to Be Seen

Federal Reserve Bank of Philadelphia President Anna Paulson laid out three scenarios for productivity gains from artificial intelligence, warning policymakers are in a different position than in the 1990s as inflation remains above their 2% goal.

• “The big productivity effects, if they come, seem likely to mostly lie ahead,” Paulson said in prepared remarks for a conference organized by the San Francisco Fed
• “I would be inclined to weight the possibility of overheating more heavily in determining appropriate policy,” Paulson added, noting policymakers are in a “different position” than during the 1990s technology boom
• Long-term inflation expectations are consistent with ...