![\"The](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/11\/powell-ai-job-market.jpg\")
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\t\t\tIllustration by Tag Hartman-Simkins \/ Futurism. Source: Alex Wong \/ Getty Images<\/p>\n
If you had a hunch that the economy is in the tubes lately, you\u2019re not alone: Federal Reserve chair Jerome Powell agrees with you<\/a>.<\/p>\n After his long-anticipated Federal Open Market Committee (FOMC) meeting on Wednesday, Powell told reporters that \u201cjob creation is very low, and the job-finding rate for people who are unemployed is very low.\u201d<\/p>\n Per Fortune magazine<\/a>, Powell added that a \u201csignificant number of companies\u201d have been contributing to the malaise by laying off workers or pausing hiring. Their reason? None other than artificial intelligence.<\/p>\n \u201cMuch of the time they\u2019re talking about AI and what it can do,\u201d the Fed chair said about executives of large corporations. \u201cWe\u2019re watching that very carefully.\u201d<\/p>\n Powell\u2019s cynical comments come after the Fed announced that it\u2019d cut interest down to around 3.75-4.0 percent, the lowest level in three years, CNN reported<\/a>. The Fed board has been facing something of an impossible situation over the past few months, juggling both rising unemployment and severe inflation.<\/p>\n In a healthy market economy it\u2019s typically understood that employment and inflation have an inverse relationship<\/a> \u2014 when one goes up, the other goes down.<\/p>\n In 2025, however, both are rising at the same time, placing an increased burden on working-class households, and putting the Fed in an impossible situation<\/a>. As the number of people out of work goes up, corporations are able to use the pressure<\/a> of hungry hands to keep wages for actual workers low.<\/p>\n The effect of this horrible job growth \u2014 fueled by the hype of the AI narrative<\/a> \u2014 is an economy where the rich spend like sailors, while the poor get much poorer.<\/p>\n As Powell put it: \u201cconsumers at the lower end are struggling and buying less and shifting to lower-cost products,\u201d while high income households and corporations enjoy the strongest stock market<\/a> in history.<\/p>\n More on the economy: The Economy Is So Off the Rails That They\u2019re Trying to Figure Out How to Make Ads Specifically Targeted at AI Bots<\/a>
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