Recently, there has been increasing discussion within the Federal Reserve about the impact of AI. Lisa Cook has raised a noteworthy point — she believes that the widespread adoption of artificial intelligence could push up unemployment rates in the United States, which is precisely the most challenging issue the Fed is currently facing.

Honestly, this concern is not unfounded. We see all industries accelerating the deployment of AI, from manufacturing to services, and the efficiency gains come at the cost of structural employment pressures. The problem is, if unemployment in the U.S. truly rises due to AI automation, traditional monetary policy tools might become less effective.

Cook’s core argument is — the Federal Reserve will find it difficult to effectively respond to this employment trend driven by technological progress through conventional means. This is not just a simple economic cycle fluctuation but a structural shift. Raising or lowering interest rates cannot change the fundamental fact that AI is replacing human labor.

This also explains why recent discussions about AI’s impact on the labor market have generated such a strong response in the financial community. If the U.S. unemployment rate faces ongoing pressure from technological advancements, policymakers may need more than just monetary policy — they will require more structural reforms and re-employment training programs. This is a long-term issue, and the market is closely watching how the Fed will respond.