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Federal Reserve's Williams: It is still unclear how productivity prosperity will affect interest rates

DeepFlowTech
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Deep Tide TechFlow News, May 28 — Federal Reserve Vice Chairman Williams stated that it is currently unclear how productivity improvements will ultimately impact interest rates and the Federal Reserve's policy decisions. Williams said, "My answer to the question 'How will changes in trend productivity growth affect the economy and monetary policy' is not surprising — it depends on the specific circumstances." He added, "Specifically, it depends on the nature of these changes and their expected duration." At the time of this speech, Federal Reserve officials are trying to assess how the recent surge in productivity, along with expectations of further productivity gains driven by artificial intelligence technology, will impact inflation and the labor market. Several Fed officials have expressed uncertainty about how these dynamics will ultimately evolve. (Jin10)
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