Federal Reserve Bank of Boston convenes panel on economic uncertainty and AI implications for productivity and labour markets

The Federal Reserve Bank of Boston hosted a panel discussion with Federal Reserve Board Governor Lisa D. Cook, Boston Fed President and CEO Susan M. Collins, and Central Bank of Chile Board Member Luis Felipe Céspedes on how heightened uncertainty is affecting the US and global economies and how artificial intelligence could shape productivity, employment and inflation. Collins described uncertainty as a recurring theme in discussions with New England businesses and households, with some taking a “wait and see” approach and others accelerating projects, and argued that policymakers need to look beyond individual data points to focus policy on where the economy is going. Céspedes characterised uncertainty as multidimensional and potentially producing atypical market reactions in emerging economies, reinforcing the role of well-conducted monetary policy as an anchor. Cook urged policymakers to be “cautious and humble,” pointing to the July 2025 US jobs report as “concerning,” with roughly 35,000 jobs added per month over the prior three months and major revisions to May and June data; on AI, she described it as a general-purpose technology that could generate new ideas, change job tasks and affect price stability through productivity gains. Collins cited firms using AI to reduce production defects and address local workforce shortages, while Céspedes emphasised the need for a robust policymaker approach to potential labour- and financial-market consequences, particularly in less-diversified emerging economies, alongside education and training for workers.