Challenges and risks of artificial intelligence directing U.S. central-bank decisions are substantial

The U.S. Federal Reserve's decision-making process is a complex interplay of data analysis, economic modeling, and expert deliberation. As the world's most influential central bank, the Fed's decisions ripple across economies, affecting everything from mortgage rates to international trade.

Now imagine a world where the intricate relationships between interest rates, inflation targets, and employment figures are determined not just by humans, but by AI. Picture sophisticated artificial-intelligence algorithms capable of processing vast amounts of data in milliseconds. Envision these systems rapidly simulating countless economic scenarios, from trade wars to natural disasters, providing the Fed with nuanced forecasts of global economic ripples before they even begin.