Fed Vice Chairman: The impact of AI on the Fed's monetary policy decisions may still be premature.

Odaily News The Fed's Vice Chairman Jefferson stated that he believes there is a clear distinction between the rise of artificial intelligence and the internet boom of the late 1990s. In a speech prepared for an event at the Cleveland Fed on Friday, Jefferson noted that compared to many internet companies of the late 1990s and 2000s, which “barely achieved profits and had only speculative revenue prospects even when they received external funding, and relatively easily listed on exchanges in the face of investor enthusiasm,” the valuations of AI-related companies measured by price-to-earnings ratios are still far below the peak levels of internet companies. He mentioned that at the peak of the internet bubble, over 1,000 companies went public as internet companies, while now there are about 50 publicly listed companies focused on artificial intelligence. Jefferson also stated that it may be too early to judge the impact of artificial intelligence on the Fed's monetary policy decisions. He remarked that the financial system remains robust and resilient.