Policymakers at the US central bank held mixed views on the impact of artificial intelligence, minutes from the latest Federal Open Market Committee meeting revealed.
In January, the Federal Reserve decided to leave the federal funds rate target range at 3.50% to 3.75%. Ten of the 12 Federal Open Market Committee members supported the decision, with detractors Stephen Miran and Christopher Waller advocating a 25 basis point cut.
The minutes said: "In their consideration of monetary policy at this meeting, participants noted that inflation had remained somewhat elevated and that available indicators suggested that economic activity had been expanding at a solid pace...Moreover, in light of the strong pace of AI-related investment as well as the higher productivity growth of recent years, several participants judged that ongoing gains in productivity would be supportive of economic growth.
"Some participants discussed potential vulnerabilities associated with recent developments in the AI sector, including elevated equity market valuations, high concentration of market values and activities in a small number of firms, and increased debt financing," they added.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.