February 24, 2026
Robots, rates, and rage
Fed's Cook says AI triggering big changes, sees possible unemployment rise
Fed says AI may mean more layoffs; the internet asks: where’s the plan
TLDR: A Fed governor warned AI could raise unemployment and that interest-rate cuts might not help, pushing solutions like education and training. Commenters blasted the speech as vague, questioned whether AI is a scapegoat for a tough job market, and demanded real specifics and a plan.
Fed Governor Lisa Cook dropped a sober note: AI is rewriting the rulebook on work, could push unemployment up, and rate cuts—aka cheaper borrowing—might not save the day. She suggested non-money fixes like education and training instead. Cue the comments: lelandbatey cracked, “ZIRP won’t fix this one,” translating Zero Interest Rate Policy into “the Fed can’t just press the cheap-money button.” paxys yawned that it’s the same old “hedged” speech with no new details, while Avicebron demanded specifics beyond the fluffy promise of “new opportunities.”
The drama? Some readers think the Fed is preloading an excuse for higher jobless numbers (“It’s AI, not us!”), while others argue the real issue is a brutal hiring market that predates chatbots. eighty8days asked if AI is the culprit or just the convenient scapegoat—and wanted to know if anyone plans to actually do anything. Meanwhile, root_axis threw shade at institutional incentives, warning that “productivity boom” talk can mask uncomfortable tradeoffs: inflation versus unemployment. Memes flew: “Learn to code 2.0,” “neutral rate = good luck,” and “vibes-based economics.” Bottom line: Cook says the robots might boost output and still cost jobs, but commenters want fewer buzzwords and more receipts, timelines, and an actual plan. Read the Reuters piece for the full speech; stay for the spicy replies.
Key Points
- •Fed Governor Lisa Cook said AI is causing a major restructuring of the U.S. labor market, with early signs in coding roles and entry-level job access.
- •She warned that AI-driven job displacement may precede job creation, potentially raising unemployment and reducing labor force participation.
- •Cook stated that standard demand-side monetary policy may be unable to offset AI-related unemployment without increasing inflation.
- •She suggested non-monetary policies such as education and workforce programs may be better suited to address AI-related labor challenges.
- •Cook noted an AI investment boom could raise the neutral interest rate in the short term, but it might fall over time if AI gains heighten inequality.