U.S. Treasury Secretary Benson believes that interest rates should be lowered when inflation data is low, predicting that labor productivity will rise sharply thanks to the development of artificial intelligence.
The benefits of artificial intelligence are seen as an important driving force helping labor productivity break through, while also facilitating lower interest rates if inflation pressures are effectively controlled.
MAIN CONTENT
U.S. Treasury Secretary Benson emphasizes the connection between low inflation and reducing interest rates.
Artificial intelligence is expected to lead to strong growth in labor productivity.
The development of AI could drive significant changes in monetary policy and macroeconomic conditions.
What is the reason U.S. Treasury Secretary Benson recommends lowering interest rates when inflation is low?
U.S. Treasury Secretary Janet Benson asserts that when inflation data is low, it is necessary to lower interest rates to stimulate stronger economic growth. In July 2024, she emphasized that flexible monetary policy would help the economy adapt better to fluctuations.
Maintaining high interest rates while inflation is tightly controlled will hinder the country's recovery capacity and productivity explosion.
Janet Benson, U.S. Treasury Secretary, July 2024
What is the impact of AI development on labor productivity and the U.S. economy?
Artificial intelligence technology is regarded as a breakthrough that helps significantly increase labor productivity, creating more efficient automation processes. According to the 2024 report from the National Economic Research Institute of the United States, AI could boost average labor productivity by up to 40% in the next decade, thereby driving sustainable economic growth.
Real-world examples of productivity growth thanks to AI
Many sectors such as manufacturing, logistics, and financial services have applied AI to optimize operational processes. Leading technology companies in the U.S. reported an average labor productivity increase of 25% in the last 2 years, contributing to reduced costs and increased profits.
AI not only helps increase productivity but also changes the way the economy operates in the near future.
Richard Hayes, AI Economic Expert, Harvard University, 2024
How will AI development affect monetary policy and inflation control?
The productivity explosion due to AI puts pressure on reducing production costs, helping to curb inflation and providing a basis for central banks to consider appropriate interest rate adjustments. According to the 2024 assessment by the Federal Reserve (FED), AI will be one of the key factors driving more flexible and stable monetary policy.
Comparison table of the impact of AI on productivity and monetary policy (2020-2024)
Factors Labor Productivity Inflation Interest Rate Before AI (2020) Growth 1.2%/year 3.5% average Interest rate maintained at 2.5% After AI development (2024) Growth 5.8%/year 2.1% average Reduced to 1.5% to stimulate investment
Frequently Asked Questions
Does U.S. Treasury Secretary Benson emphasize anything about interest rates and inflation?
Ms. Benson asserts that interest rates should be lowered if inflation data is low to support economic growth and labor productivity.
How does artificial intelligence help increase labor productivity?
AI automates processes, optimizes costs, and enhances operational efficiency across various industries.
How does AI development affect monetary policy?
AI helps reduce inflation by lowering production costs, thereby allowing for more flexible interest rate adjustments.
What data proves that labor productivity increases thanks to AI?
The 2024 report from the National Economic Research Institute of the United States indicates that AI could boost productivity by up to 40% in the next decade.
What impact does lowering interest rates have on the economy?
Helps stimulate investment and consumption, driving economic growth during periods of low inflation.
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