Federal Reserve's Cook discusses AI's impact on economy at Oakland Tech Week

Source published 15m agoTerminal published 11m ago

Summary

On September 28, 2026, Federal Reserve Governor Lisa Cook delivered a keynote address at Oakland Tech Week, focusing on the implications of artificial intelligence (AI) for the economy. Cook emphasized that AI is poised to be a transformative general-purpose technology comparable to electricity and the internet, affecting not only economic growth but also specific sectors through concentrated demand. She noted that while inflation remains above target, driven in part by surging AI-related investments, the labor market has thus far demonstrated resilience, with unemployment rates showing stability despite evolving labor demands. Cook reiterated the Federal Reserve's commitment to fostering responsible AI use while navigating the complex challenges it presents for monetary policy and economic stability.

Analysis

Lisa Cook: Lisa D. Cook is a Governor on the Board of Governors of the Federal Reserve System with expertise in the economics of innovation and artificial intelligence. In her September 28, 2026, speech at Oakland Tech Week, she examined AI's implications for inflation dynamics, labor market adjustments, and long-term productivity growth. Cook has consistently advocated for responsible AI development in prior addresses focused on technology's economic effects. Federal Reserve: The Federal Reserve is the central banking system of the United States responsible for setting monetary policy, supervising financial institutions, and promoting economic stability. Governor Lisa D. Cook's keynote at Oakland Tech Week emphasized AI's role in shaping the institution's assessments across monetary policy, financial stability, and bank supervision. Her analysis connects AI developments directly to the Fed's dual mandate of price stability and maximum employment. Inflation Dynamics: AI-related investments are generating concentrated demand pressures in specific sectors while also contributing to broader economy-wide price effects through inputs like energy and construction. Labor Market Resilience: Early stages of AI adoption have not yet produced significant shifts in unemployment or layoff rates, though certain sectors show signs of changing labor demand. AI as General-Purpose Technology: Policymakers view AI as a transformative innovation comparable to electricity or the internet, with broad effects on economic growth and downstream industries.

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