Jefferies strategist David Zervos warned that a surging wave of artificial intelligence adoption could complicate the Federal Reserve’s dual mandate by lifting growth while pushing unemployment higher. Speaking on CNBC, Zervos said the economy could expand 3.5% to 4% even as joblessness ticks up, arguing the Fed should prioritize the labor market over inflation for now. He cited tech investors who foresee AI eliminating 3 million to 5 million U.S. jobs within three to four years. Despite the risks, Zervos remains bullish on equities and has been floated as a potential successor to Fed Chair Jerome Powell.
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