3 key takeaways from Powell at January's Fed meeting

"As for AI, Powell speculated that new technology is likely to have a positive effect on both companies and their employees. "Every technological wave will eliminate some jobs and create other jobs," he said. "It's always been the case. If you look back, wave after wave after wave, there will be some disruption. But ultimately, technology increases productivity, which is the basis for rising wages. It may not all happen immediately, but over time, it's what enables incomes to rise.""

"Powell said that the central bank's dual mandate - stable prices and maximum employment - is becoming more balanced than it was for much of last year. The unemployment rate is relatively low with minimal changes, even as labor market demand and hiring remain stagnant. He added that consumer spending has remained "resilient" and inflation rates are in a solid position, aside from tariff impact."

The Federal Reserve held interest rates steady in its January 2026 meeting while removing a previous warning about downside risks to the labor market. The central bank's dual mandate of stable prices and maximum employment appears more balanced as unemployment remains relatively low despite stagnant hiring and labor demand. Consumer spending has remained resilient and inflation is generally in a solid position aside from tariff impacts. New technologies and AI are expected to generate productivity gains that create jobs over time, though short-term disruption is possible. The Federal Open Market Committee continues to register split votes, with dissenting governors.

Read at Business Insider