💼 Jerome Powell says the AI hiring apocalypse is real: ‘Job creation is pretty close to zero’ 😶🌫️
The U.S. labor market may look stable — 4.3% unemployment and steady consumer spending — but Fed Chair Jerome Powell says the reality is chilling. “Once you adjust for data overcounts, job creation is pretty close to zero,” he warned during the latest FOMC press conference.
Powell linked the slowdown to AI adoption, as more companies admit they can “do more with fewer people.” Giants like Amazon, Target, and Paramount have announced layoffs, many directly citing automation and AI.
The Federal Reserve cut rates by 0.25%, now 3.75%–4%, citing “downside risks to employment.” Powell described the economy as “moderately growing,” powered by massive investments in AI data centers and tech infrastructure.
Yet the same tech boom is replacing jobs, creating what economists call the “Great Freeze” — a market where hiring stagnates even as productivity soars. With nearly 946,000 layoffs this year, including 17,000 tied to AI, the shift is clear: machines are reshaping work faster than policy can adapt.
Powell noted a widening K-shaped economy — wealthy households benefit from stock and AI gains, while lower-income consumers cut back and “trade down” to cheaper products.
“There’s no risk-free path,” Powell said. “We face upside risks to inflation, downside risks to employment — a difficult balance for any central bank.”
As AI continues to evolve, Powell’s message is clear: the U.S. isn’t just facing automation — it’s entering a new era of low-fire, low-hire economics. ⚙️💰
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