At least, not yet. While Fed Chairman Jerome Powell has previously warned about AI, saying in June that it has the "potential to make really dramatic changes" to the U.S. economy, the leader of America's central bank is blaming other factors for the newfound tightness in the job market.

Jerome Powell says that while the job creation is slowing "broadly," AI is also likely affecting the job market.

Spending] may well be skewed toward higher-earning consumers,” Powell said. “There’s a lot of anecdotal evidence to suggest that.”

Researchers at GWUniversity built an AI simulation of Federal Reserve committee meetings, showing political pressure fragments consensus & influences policy decisions.

The July jobs report showed payroll growth slowed to just 35,000 jobs per month from May through July, while the unemployment rate rose to 4.2%. The cause is being debated, and a new analysis from

By Leika Kihara TOKYO (Reuters) -A simulated Federal Reserve meeting that used artificial intelligence agents modeled on real-life policymakers showed political pressure polarised members of the board in their rate-setting deliberations.

In a press conference on Wednesday, Fed Chair Jerome Powell was asked whether he thinks AI has any effect on this trend. Powell said that although there is still great uncertainty over that link, he believes that it’s “probably a factor,” particularly when it comes to young graduates who are facing massive unemployment rates.

Many people worry that AI is going to take their job. But a recent survey conducted by the Federal Reserve Bank of New York found that rather than laying off workers, many AI-adopting firms are retraining their workforces to use the new technology.

An artificial intelligence simulation of Federal Reserve meetings suggested that the debate about their rate-setting plans among the policymakers can lead to dissent, especially when politics and weak data come into play.

The Federal Reserve cut its key interest rate by a quarter-point Wednesday and projected it would do so twice more this year as concern grows at the central bank about the health of the nation's labor