AI Could Outsmart Central Banks and Predict Policy Moves Before Humans, Economist Warns

AI may force central banks to rethink monetary policy communication and policy, according to economist Markus Brunnermeier (Credit: Oleg Gamulinskii/Pixabay)

Artificial intelligence could become so fast and sophisticated in financial markets that central banks may struggle to control how their own policy messages are understood.

Princeton University economist Markus Brunnermeier warned global central bankers at the Federal Reserve's Jackson Hole symposium that AI could transform markets faster than regulators are prepared for.