Federal Reserve Board member Kevin Warsh announced today
that he plans to participate in an off-site hearing of a Fed committee focused on labor productivity and employment, scheduled for November 16 in the San Francisco Bay Area. The hearing will gather insights from a wide range of experts regarding the impact of technology and labor productivity on monetary policy.
Warsh spoke at a press conference following the Federal Reserve’s decision to keep interest rates unchanged. He noted that the event will analyze how productivity growth—driven by advancements in artificial intelligence (AI)—affects the economy over the short, medium, and long term.
"Will this turn out to be a true productivity miracle, or will the process unfold more gradually? Personally, I am very interested in refining my own position on this issue," Warsh said.
He added that the working group will examine whether AI will make the Fed’s task of maintaining price stability easier or more difficult in the coming years, as well as what implications it may have for the labor market.
According to Warsh, there are currently five active working groups that provide regular progress updates. He noted that some of these groups are expected to conclude their work by the end of the year. However, it is emphasized that the findings of these working groups are unlikely to influence current monetary policy.