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Workers Are Getting More Productive. How Will Fed Policy Change?
Posted
December 22, 2025
Views
56,209
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825
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Engagement
1.60%
December 22, 2025
56,209
825
73
1.60%
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The Federal Reserve is forecasting relatively strong GDP growth in 2026, attributable to gains in worker productivity. One long-run economic model indicates that generative AI, powered by machine learning, may have dramatic effects on both labor productivity and employment. Some investors see parallels between today’s investments in artificial intelligence infrastructure and past tech booms.
Credits:
Produced Edited and Animated by: Carlos Waters
Additional Animation: Jason Reginato, Emily Park
Senior Director of Video: Lindsey Jacobson
Washington Deputy Bureau Chief: MC Wellons
Additional Footage: Getty Images
Additional Sources: Federal Reserve Bank of Cleveland, U.S. Bureau of Labor Statistics
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How AI Is Changing The Fed’s Calculus
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