Fed's Goolsbee Cautions on Excessive Dependency on Productivity Growth

Reported about 6 hours ago

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, highlighted recent productivity growth while cautioning against overreliance on it, which could lead to economic overheating and inflation challenges. In remarks ahead of a speech, he noted that while productivity boosts efficiency, careful evaluation is necessary to determine if these gains will persist. He acknowledged the role of new technologies, like AI, in sustaining productivity but warned against the potential pitfalls of excessive optimism reminiscent of past economic bubbles.

Source: YAHOO

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