Fed Governor Lisa Cook warns the Fed may not be able to counter AI-driven unemployment

Federal Reserve Governor Lisa Cook cautioned that the central bank may lack sufficient tools to counteract job losses driven by AI automation. Her warning contrasts with Fed Governor Christopher Waller's comments that AI's risk to jobs is overstated. The divergent views within the Fed highlight growing uncertainty about AI's macroeconomic impact. Cook's remarks carry particular weight as policymakers weigh whether AI disruption could create structural unemployment that monetary policy alone cannot address.

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