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Boston Fed: U.S. May Be Headed Toward Higher Structural Unemployment, Which the Fed Can't Offset

2026-02-24 11:34

BlockBeats News, February 24th, Boston Fed said that transitioning to artificial intelligence could make it difficult for the Fed to understand; the US may be heading towards a higher structural unemployment rate that the Fed cannot offset; the Fed has always focused on the economic performance of various economic groups; this data is crucial for understanding the slack in the labor market.


Furthermore, Boston Fed said that it hopes the "protective fence" that safeguards the Fed's independence can be maintained. Even as productivity continues to rise, the Fed still needs to pay attention to inflation issues; addressing short-term issues may lead to bigger problems in the long term. Regarding how Powell may respond to Trump's pressure, "we will only know when the time comes." Fed Chair nominee Powell needs to build good relationships with central bank staff and colleagues. (FXStreet)

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