Fed Governor Lisa Cook warns that AI transition could lead to higher unemployment and limit interest rate cuts
Fed Governor Lisa Cook warned today that AI could raise unemployment. She noted that lower interest rates may not fix job losses without fueling inflation.
Federal Reserve Governor Lisa Cook said today that artificial intelligence has triggered a generational shift in the U.S.
US labor market and could cause a short-term rise in unemployment that the Fed may not be able to counter with lower interest rates. Speaking at the National Association for Business Economics, Cook explained that the transition is already beginning, as evidenced by changes in coding occupations and the increasing difficulty some workers face when seeking entry-level jobs.












