Vice Chair Philip N. Jefferson spoke at the 2025 Federal Reserve Bank of Cleveland Financial Stability Conference about how artificial intelligence (AI) is transforming the economy and the financial system. He noted that AI boosts productivity in many industries, potentially supporting growth while lowering inflationary pressures, but also raises concerns about job displacement and unequal impacts across workers. Jefferson highlighted the Federal Reserve’s Financial Stability Report, which shows that 30 percent of market contacts now view AI sentiment as a risk to the U.S. financial system, up from 9 percent earlier in the year. He compared the current AI era with the late‑1990s dot‑com boom, pointing out that AI firms have solid earnings, lower price‑to‑earnings ratios, fewer listed companies, and limited debt use. The Fed will continue to monitor AI’s effects on employment, inflation, and financial stability.
https://www.federalreserve.gov/newsevents/speech/jefferson20251121a.htm
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