S.F. Federal Reserve Bank President Mary Daly Believes AI Can Boost the Labor Market

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TIME sat down with Mary Daly at the Aspen Ideas Festival to discuss the nation’s monetary policy, the role of AI in the workforce, and more.

Mary Daly, president of the Federal Reserve Bank of San Francisco, during a talk at the Aspen Ideas Festival in Aspen, Colo., on Friday, June 28, 2024.n an exclusive interview with TIME, San Francisco Federal Reserve president and chief executive Mary Daly said that the explosion of artificial intelligence could improve the labor market in the long-term and make workers more productive, even as workers fear the rising technology will change or eliminate their jobs.

So we set out to ask people: “What does your community mean to you?” And what we found is that…when you go and talk to people, they tell you that yes, things can be challenging. Here's our way of making it better. Here's what makes our situation better. We're trying to leave the world better than when we found it. Here's how we're doing that. I wanted to tell those stories.

How confident are you that the Fed will get interest rates back down to the 2% target without causing a recession? Are you concerned about further softening in the labor market, and how AI could impact the labor market in the longer term? In the economy in San Francisco or any city where there's a lot of office vacancy or where people are worried about the vibrancy of the urban corridor…they say tourism is coming back. And that's really good, but a nighttime business. The day businesses—like the lunch business—are all workforce . And of course, to make a vibrant city one that feels like there's liveliness in it, it is about bringing your employees back to work at least part time.

 

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