AI Job Losses Mount as Inflation Hits Low-Income Households

A recent earnings season has brought to light concerns about AI job losses and its impact on the labor market. Morgan Stanley's 'AI disruption tracker' suggests that while the effect is small, it is increasingly visible. The bank found that unemployment rose in occupations with high AI exposure, but stabilized in low- and medium-exposure ones.

The Fed's next meeting is over six weeks away, but investors are eager for clues on how new Chair Kevin Warsh's task forces will pan out. These five study groups will examine the central bank's communications, balance sheet policy, data analysis, productivity, and inflation frameworks.

A new NBER working paper by Kunal Sangani found that during the 2021-2023 inflation spike, cheaper versions of products saw higher price growth due to producers passing on input costs equally across product lines.