Fed Governor Trips All Over Himself Trying to Reassure CNBC Host AI Won't Cause Mass Unemployment

"It's the folks who are entering the job market for the first time that are bearing the brunt of that, and to me, that's in a very standard, classic textbook way, exactly the type of unemployment that the Central Bank is equipped to help accommodate with looser monetary policy."

"Technology destroys jobs, but it always creates new jobs, too. And that sectoral reallocation from the old jobs to the new jobs is something that monetary policy can accommodate."

"We have a hard time imagining what the new jobs can be because they don't exist yet. And as an economist, I'm not really good at as a futurist—I'm not really good at predicting what those are."

Following February's disappointing jobs report showing 92,000 job losses and 69,000 downward revisions, Federal Reserve Governor Stephen Miran addressed concerns about AI-related unemployment. He cautioned against drawing conclusions from single data points, noting that entry-level workers typically bear the brunt of technological displacement. Miran emphasized that technology historically destroys jobs while simultaneously creating new ones, a sectoral reallocation that monetary policy can accommodate. When questioned about what new jobs AI might create, Miran acknowledged difficulty in predicting future employment categories, as new jobs don't yet exist and are inherently difficult to imagine before they emerge.

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