👉👉👉 #FederalReserve Forecasts "AI Will Be Deflationary" To Boost Economy

Using AI to Boost the #U.S. Economy

During the recent Federal Open Market Committee (FOMC) meeting, policymakers discussed several factors that could lead to future disinflation. Initially, they considered elements such as the continued easing of demand-supply pressures in product and labor markets, the lagged effects on wages and prices from previous monetary policy tightening, delayed responses of measured shelter prices to rental market developments, and the prospect of additional supply-side improvements.

However, they also identified Artificial Intelligence (AI)-related technology as a potential driver in mitigating inflation. The application of AI could significantly boost productivity in businesses and, consequently, the economy. The #fomc participants noted that longer-term inflation expectations have remained well anchored, which is seen as a crucial component in the disinflation process. They emphasized the need for additional favorable data to ensure confidence that inflation will sustainably trend toward the 2% target.

The Appeal to Several Governments

Highlighting AI as a factor in the search for disinflation is a significant endorsement for this emerging technology. It suggests that AI is gradually gaining traction across various sectors and borders. The U.S. government may eventually prioritize this sector, especially as it has been working to regulate AI within the country.

In December 2023, the #Biden administration launched an initiative to establish critical standards for the safe, secure, and trustworthy deployment of AI in the U.S. Biden’s executive order on AI aligns with the European Union's regulatory efforts.

In Europe, the Council's Intergovernmental Steering Committee on Media and the Information Society (CDMSI) has established guidelines for responsible AI use in journalism, upholding human rights, democracy, and the rule of law.

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Source - coingape.com