Federal Reserve Creates AI Task Force to Guide Policy

The Federal Reserve is creating a group to study how artificial intelligence could affect the economy.

The group is expected to finish its work by the end of the year.

It will look at how AI might change what people buy and how much businesses can produce.

The group will also consider what AI could mean for future interest-rate decisions.

Chair Kevin Warsh said other parts of the government will decide how to handle AI’s wider risks and opportunities.

He did not say who will serve on the task force.

He also did not give an estimate of how much AI is affecting growth or inflation.

The announcement came as the Fed raised interest rates to 3.75–4%.

Warsh said inflation remains above the Fed’s 2% goal, while employment remains broadly strong.