Vosh wants to “rewrite” the US Federal Reserve

Before the new formula is put in place, there will be no rate hikes or cuts in the short term
Vosh’s first monetary policy message to Congress was actually summed up in a single sentence: comprehensively upgrade the Fed’s decision-making system—from data and the balance sheet to AI and inflation models
Vosh repeatedly mentioned the term productivity; he has brought it up several times before as well
The Fed’s past approach was: raise rates to suppress demand
Vosh’s view is: with demand strong, AI improves efficiency to offset it
But can AI really pull this off? Vosh doesn’t know, so he specifically set up a productivity working group to study whether AI can change the US economy’s supply side
This means monetary policy won’t move much in the short term; against the backdrop of rate-hike expectations, this is genuinely good news