CEO of San Francisco Federal Reserve Bank Optimistic About AI Impact on Jobs and Economy
The CEO of the San Francisco Federal Reserve bank, Mary Daly, shared an optimistic view on the impact of artificial intelligence on jobs during a recent appearance at the Fortune Brainstorm Tech conference. Daly, who oversees a region that includes Silicon Valley, noted that while businesses are still navigating how to best utilize AI technology, early indications suggest that AI is actually benefiting workers rather than displacing them.
Speaking at the conference in Deer Valley, Utah, Daly emphasized the positive contributions of the tech sector, stating that it is continuously bringing new advancements that improve business operations and enhance our daily lives. She highlighted a case where Honeywell used AI to address a labor shortage by augmenting its workforce, rather than replacing employees, allowing workers to transition to new tasks.
Daly also addressed the current state of the U.S. labor market, noting a softening trend after a period of tightness. Despite the recent increase in the unemployment rate, Daly remains optimistic about the potential for AI to help meet demand and increase efficiency without leading to widespread job losses.
While the Federal Reserve has been expected to cut interest rates this year, Daly did not provide any hints on the timing or frequency of potential rate cuts. She acknowledged the challenges posed by inflation and emphasized the importance of maintaining the Fed’s independence and integrity in the face of political pressures.
In response to questions about the impact of rate cuts on technology company valuations, Daly highlighted the complex relationship between interest rates and market dynamics, particularly in the tech sector. She emphasized the need for the Fed to earn the trust and respect of the American people by focusing on its core mission of promoting economic stability and growth.
Overall, Daly’s remarks at the conference offered a nuanced perspective on the intersection of AI, labor markets, and monetary policy, providing valuable insights for investors, entrepreneurs, and policymakers alike.