More from NY Fed Pres. Williams:
Large AI investments in US are affecting global demand for capital
People don’t like high inflation
Getting inflation to 2% as soon as we can is right
2% inflation target is a very good compromise, serves us well
Powerful that everyone knows Fed’s inflation target
Independence of Fed is incredibly important
Evidence is compelling that independent central banks make unpopular short-term decisions that pay off
Loss of central bank independence has had horrible consequences for inflation in other countries
If Fed gets it right, that’s good for global economy.
AI is the next stage in advances in productivity growth.
There will be some issues with AR regarding labor market
