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Paulson: still to early to know how AI will influence inflation, demand

BY Reuters | ECONOMIC | 07:48 PM EDT

WASHINGTON, May 19 (Reuters) - It remains too early to estimate how the use of AI technology will influence inflation, jobs and monetary policy, Philadelphia Federal Reserve Bank president Anna Paulson said on Tuesday, addressing an issue likely at the center of coming Fed deliberations.

"It's still early days," with competing narratives about AI lowering inflation and allowing rate cuts or stoking demand, prices, and interest rates higher, Paulson said at an Atlanta Fed conference.

"It will be helpful to have the stories manifest in the data. Right now it's an infrastructure buildout and there is lots of potential." (Reporting by Howard Schneider; Editing by Himani Sarkar)

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