St. Louis Fed’s Musalem Says AI Will Boost Productivity

A regional Fed president tying AI to productivity matters because productivity is one of the few variables that can let the economy grow faster without stoking inflation, which is precisely the calculus behind rate decisions. The remark is thin on specifics, so its weight is more signal than substance: it shows AI is now part of the official vocabulary around output and labor. Whether that framing hardens into a shared view among policymakers, and how it shapes the productivity assumptions baked into their projections, is the open question worth watching.