Opening Remarks for the “AI and Productivity across the Economy” Panel
Federal Reserve Board
Fed Governor Lisa Cook lays out a practical framework for thinking about AI as a productivity shock with messy labor-market transition dynamics: displacement can precede job creation, and a rise in unemployment may not mean the economy has “slack” if productivity is simultaneously rising. The important implication is policy tradeoffs—standard rate cuts may not “fix” AI-driven job churn without risking inflation, pushing more responsibility toward workforce and education policy.