Speaking after the Federal Open Market Committee’s decision to lower interest rates by a quarter point to a range between 3.75%-4%, Powell said headline data showing 4.3% unemployment and solid consumer spending mask deeper weakness.
“Job creation is pretty close to zero,” he said, explaining that payroll data overstates employment gains once statistical adjustments are removed.
He cited “a significant number of companies” announcing layoffs or hiring freezes, with many explicitly linking those moves to AI. “Much of the time they’re talking about AI and what it can do,” Powell said. “We’re watching that very carefully.”
Otherwise-Sun2486 on
Ehhh pretty close to zero means he just doesn’t want people to freak out, it really means it is already below zero.
Eastcoastpal on
It is like a game of “wrong answers only”
Powell is willing to say anything than say that we are officially in stagflation. No new job creation, no growth, but a stubborn high inflation caused by both the tariffs and the monetary and fiscal policy from COVID years.
MrNaugs on
It is not AI. Every study shows AI does a shit job replacing people. It is because the economy is on the brink of collapse but has some how stumbled on, kind of like Russia’s economy as well. The experts have no idea how much longer debt can keep going till the house of cards comes crashing down. But the companies want cash on hand to buy up everything when it happens.
MarquiseGT on
Videos games are up beta testers are needed because I couldn’t give a damn less what an ai thinks of my game if I’m selling it to humans .
Acceptable-Wolf1532 on
The interest payments on 36tn of debt are something like 60bn per month.
billionaireboysclubs on
Everyone with half a brain has been saying this for years. Ai is NOT a job creation tool, it’s a job ELIMINATION tool. Cities like San Francisco had a clueless mayor who was pushing AI as a comeback of sorts for the city but she didn’t clearly understand what AI does. The new mayor there has no illusions about what AI will do and has done.
Notice that higher end white collar jobs where pay is higher are being wiped the fuck out. This has been what corporations have been after for years. With AI you will lose programming, legal jobs, office jobs and computer jobs, plus you’ll lose low end jobs that require little to no skill.
So both higher end jobs where pay is higher and a degree is required plus lower end jobs where no real skill is needed are both being wiped out.
AI will bring on a severe depression and dark time for many millions of Americans. There will be no reprieve except some type of civil war or breakdown of society where AI is destroyed.
Strict_Weather9063 on
Been warning about this for fifteen years now, saying we need a UBI to make sure people are taken care of and can live their lives. It isn’t going to get better it is just going to keep getting worse. Universal health insurance and a UBI of at least 120k a year no fucking around on it you have to replace peoples income.
Firehawk-76 on
Layoffs tied to AI need to be banned for at least five years
evil_timmy on
92% of the gains in GDP this year have been AI or data center related.
Fit_Earth_339 on
Don’t worry though Trump said everything is good without saying how and I feel better already…we r fucked.
Reddit_username9873 on
Are they trying to blame A.I. for the horrible decisions our president has made. You know when you deport hard workers and then don’t hire anyone else its not A.I.’s fault.
3DPipeDream on
When people have less money they buy fewer things. Fewer things mean fewer jobs. Being in a deep recession isn’t rocket science OR AI.
XdtTransform on
Can confirm. I have several friends experienced in their respective fields who are having a really tough time finding jobs.
It’s just one automated rejection after another. LinkedIn is absolutely useless. In fact, it’s worse than useless – it wastes untold amount of time by hosting ghost jobs.
ThatInternetGuy on
Kinda moronic considering that the Fed interest rate should be under 2% but Fed keeps it 4% and above for far too long, because they are afraid of rising inflation? This isn’t 2023, Jerome. High inflation caused by Covid stimulation is long gone. There’s absolutely no reason to keep the Fed interest rate at 4%. It should have been 2% since June 2025!
15 Comments
From the article
Speaking after the Federal Open Market Committee’s decision to lower interest rates by a quarter point to a range between 3.75%-4%, Powell said headline data showing 4.3% unemployment and solid consumer spending mask deeper weakness.
“Job creation is pretty close to zero,” he said, explaining that payroll data overstates employment gains once statistical adjustments are removed.
He cited “a significant number of companies” announcing layoffs or hiring freezes, with many explicitly linking those moves to AI. “Much of the time they’re talking about AI and what it can do,” Powell said. “We’re watching that very carefully.”
Ehhh pretty close to zero means he just doesn’t want people to freak out, it really means it is already below zero.
It is like a game of “wrong answers only”
Powell is willing to say anything than say that we are officially in stagflation. No new job creation, no growth, but a stubborn high inflation caused by both the tariffs and the monetary and fiscal policy from COVID years.
It is not AI. Every study shows AI does a shit job replacing people. It is because the economy is on the brink of collapse but has some how stumbled on, kind of like Russia’s economy as well. The experts have no idea how much longer debt can keep going till the house of cards comes crashing down. But the companies want cash on hand to buy up everything when it happens.
Videos games are up beta testers are needed because I couldn’t give a damn less what an ai thinks of my game if I’m selling it to humans .
The interest payments on 36tn of debt are something like 60bn per month.
Everyone with half a brain has been saying this for years. Ai is NOT a job creation tool, it’s a job ELIMINATION tool. Cities like San Francisco had a clueless mayor who was pushing AI as a comeback of sorts for the city but she didn’t clearly understand what AI does. The new mayor there has no illusions about what AI will do and has done.
Notice that higher end white collar jobs where pay is higher are being wiped the fuck out. This has been what corporations have been after for years. With AI you will lose programming, legal jobs, office jobs and computer jobs, plus you’ll lose low end jobs that require little to no skill.
So both higher end jobs where pay is higher and a degree is required plus lower end jobs where no real skill is needed are both being wiped out.
AI will bring on a severe depression and dark time for many millions of Americans. There will be no reprieve except some type of civil war or breakdown of society where AI is destroyed.
Been warning about this for fifteen years now, saying we need a UBI to make sure people are taken care of and can live their lives. It isn’t going to get better it is just going to keep getting worse. Universal health insurance and a UBI of at least 120k a year no fucking around on it you have to replace peoples income.
Layoffs tied to AI need to be banned for at least five years
92% of the gains in GDP this year have been AI or data center related.
Don’t worry though Trump said everything is good without saying how and I feel better already…we r fucked.
Are they trying to blame A.I. for the horrible decisions our president has made. You know when you deport hard workers and then don’t hire anyone else its not A.I.’s fault.
When people have less money they buy fewer things. Fewer things mean fewer jobs. Being in a deep recession isn’t rocket science OR AI.
Can confirm. I have several friends experienced in their respective fields who are having a really tough time finding jobs.
It’s just one automated rejection after another. LinkedIn is absolutely useless. In fact, it’s worse than useless – it wastes untold amount of time by hosting ghost jobs.
Kinda moronic considering that the Fed interest rate should be under 2% but Fed keeps it 4% and above for far too long, because they are afraid of rising inflation? This isn’t 2023, Jerome. High inflation caused by Covid stimulation is long gone. There’s absolutely no reason to keep the Fed interest rate at 4%. It should have been 2% since June 2025!