Productivity leap → How will interest rates move? It depends on the 'nature of the change'—I’m familiar with this kind of verbose talk, but in the end, it all comes down to employment data.

Federal Reserve's Williams stated that how productivity improvements ultimately affect interest rates and monetary policy remains unclear, depending on the nature of the changes and the expected duration. Currently, officials are assessing the impact of recent productivity surges and higher productivity expectations brought about by artificial intelligence on inflation and the labor market, with many officials still uncertain about its future trajectory.