Bostic warns Federal Reserve cannot offset potential rise in structural unemployment caused by AI
Outgoing Atlanta Fed President Raphael Bostic warns that AI could raise the jobless rate. He says interest rate cuts cannot offset these structural shifts.
Insights:
Raphael Bostic, the outgoing president of the Federal Reserve Bank of Atlanta, warned on February 24, 2026, that the widespread deployment of artificial intelligence by firms could lead to a rise in structural unemployment across the US 
US. Speaking as he prepares to leave his post at the end of his current term on February 28, Bostic stated that the Federal Reserve would not necessarily be able to offset such a rise with lower interest rates. This potential shift in the labor market comes at a time of significant transition for the central bank and the broader national economy.
US. Speaking as he prepares to leave his post at the end of his current term on February 28, Bostic stated that the Federal Reserve would not necessarily be able to offset such a rise with lower interest rates. This potential shift in the labor market comes at a time of significant transition for the central bank and the broader national economy.
