Fed's Jefferson says AI is speeding investors' reactions to central bankers' messages
"For now, I do not think artificial intelligence is changing the way policymakers communicate, but research shows that it has affected how quickly information about policy is incorporated into asset prices," Jefferson said in prepared remarks to a conference at the San Francisco Fed that did not touch on his outlook for monetary policy or the U.S. economy. Further research is needed, he said, to determine whether the faster speed is allowing monetary policy to get transmitted faster through the economy, or, as some worry, that it "may provide an incentive for investors to value speed over accuracy, and may reduce the long-run informativeness of asset prices, which could hurt the transmission of monetary policy."
