Has been expecting to see continued productivity gains, it’s not just AI-driven.
Employment rate remains relatively low
There is been a long list of recent supply shocks, is very focused on supply-side issues. Fed inflation targeting factors driving prices. Strong productivity gains should help lessen inflationary pressures Looks forward to working with new Fed chair Kevin Warsh Very valuable to have different perspectives on the Fed After being more, hawkish in her earlier comments, these comments leaned modestly dovish and supportive of the soft-landing narrative.
Collins emphasized that productivity gains are continuing and are not solely tied to AI, which suggests she sees the economy’s supply side improving in a way that can help absorb growth without fueling inflation. Her focus on the long list of recent supply shocks and supply-side factors driving prices also implies she views inflation pressures as not purely demand-driven, which tends to argue against an overly aggressive policy response. At the same time, she acknowledged the labor market remains strong, but without framing it as a major inflation concern.