Fed's Barr (voter) says R* has risen slightly but not dramatically.
Importance
Level 1
- There is a risk AI could raise structural unemployment over time.
- Some of the strong productivity outlook owes to Ai boost.
- AI investment is 'wildly indifferent' to what the Fed rate target is.
- Fed can afford to take its time on monetary policy.
- Reasonable to expect inflation to wane as tariff impact abates.
- Low hire, low fire job market is not very dynamic; vulnerable to shocks.
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