Federal Reserve Chair Jerome Powell said in Chicago on Wednesday that artificial intelligence could significantly reshape the global economy over the next two decades. He noted that while AI's full impact remains uncertain, it is "one of the two or three things most likely to bring dramatic change to the economy all around the world in the next 20 years."
Powell acknowledged long-standing fears about technology replacing jobs, but said past innovations have ultimately improved living standards. Still, with AI evolving quickly, he said it’s unclear whether this wave will create more opportunities or lead to lasting "technological unemployment."
He described recent demonstrations as "remarkable," likening AI to a "better version of a person" rather than just a smarter search engine. He added that the Federal Reserve would closely monitor these changes, as they could influence labor markets and long-term economic policy. Also, he stated that stablecoins could gain widespread appeal, but emphasized the need for robust consumer protections to ensure their safe adoption.
