Fed's Bostic (Retiring Hawk) says the US may be trending toward structurally higher unemployment; transition to AI could be challenging to policymakers

• The US may be heading towards structurally higher unemployment, something the Fed cannot offset. 

Bostic's comments highlight a potential shift in the U.S. labor market dynamics, suggesting that unemployment may rise in a structural manner, which the Fed could struggle to mitigate. This outlook may signal a dovish shift in rate expectations among traders, as persistent unemployment challenges could influence future monetary policy decisions. Watch for corresponding movements in the USD and fixed income markets, as these comments may affect risk sentiment.