Federal Reserve (Fed) Governor Michael Barr said that he believes that recent United States (US) data indicates a stabilizing job market. He also added that it is still reasonable to think that price pressures will further cool, at the New York Association for Business Economics, New York, on Tuesday.

Key takeaways

Reasonable to think price pressures will further cool.

Job market in balance yet vulnerable to shocks.

Recent data indicates a stabilizing job market.

In the long run, AI should boost productivity and living standards.

AI boom unlikely to lead to lower Fed interest rates.

We should be prepared for the possibility that there might be serious short-term disruptions in the labor market, even if the long-term gains to society could be quite favourabl.

Little evidence thus far that AI is driving up unemployment.

Outlook suggests Fed will maintain rates steady for some time.

It is reasonable to think price pressures will further cool.

Still sees significant risk inflation will stay over 2%.

Want to see more evidence inflation ebbing to 2% target.

It's prudent for the Fed to take time and look at data before changing policy again.”