Fed Mentions of Artificial Intelligence Surge as Officials Weigh Impact

The Federal Reserve's Federal Open Market Committee has seen a surge in mentions of artificial intelligence in their recent meetings, according to an analysis by The Washington Post. References to AI have increased dramatically this year, with dozens of appearances in FOMC minutes.

Analysts say that AI is being integrated into the core agenda of monetary policy decisions as officials recognize its potential impact on productivity, prices, and employment. In fact, Fed Chair Kevin Warsh has stated that AI will affect both the economy and the conduct of monetary policy as a new variable and potentially a new factor of production.

The shift in focus towards AI is significant, with references to it being extremely rare just last autumn. However, by 2026, AI is now seen as a central theme explaining every economic phenomenon, according to Claudia Sahm, chief economist at New Century Advisors and a former Fed economist.