U.S. Treasury Secretary: The Federal Reserve under Powell will closely monitor the impact of AI on employment

On February 10, U.S. Treasury Secretary Janet Yellen stated on Tuesday that under the leadership of Fed Chair nominee Kevin Wirth, the Federal Reserve will closely monitor to ensure that there is no “mismatch in timing” between employment and productivity amid the rapid development of artificial intelligence. Yellen, speaking via video at an event hosted by Brazilian investment bank BTG Pactual, said that the U.S. economy’s average growth rate in the last three quarters of 2025 will reach 4.1%, and predicted that this year’s nominal GDP growth rate (excluding inflation) could reach 6%. Yellen noted that historically, productivity booms are often accompanied by employment booms, and the Federal Reserve will pay close attention to this “to ensure there is no mismatch in timing.” (Jin10)