AI's Impact on US Labor Market May Limit Fed's Ability to Cut Rates Amid Inflation Concerns

Published: Feb 28, 2026 13:55

Save

US Fed Governor Cook pointed out that the rise of AI technology has triggered generational shifts in the US labour market, a change that may lead to an increase in the unemployment rate. In this context, the US Fed may find it difficult to respond through interest rate cuts, and monetary policy could face a dilemma: on one hand, interest rate cuts have limited effectiveness in addressing structural unemployment; on the other hand, they may further push up inflation.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Common.Time.minsAgo

EGA Reports Record 2.84M mt Cast Metal Production in 2025, Al Taweelah Refinery Output Down Slightly

[SMM Aluminum Express] On February 25, 2026, EGA announced its 2025 annual results. According to EGA's official website, EGA's cast metal production reached a record high of 2.84 million mt in 2025. EGA sold 2.83 million mt to over 400 clients in more than 50 countries, an increase from 2.77 million mt in 2024. In 2025, the Al Taweelah alumina refinery produced a total of 2.4 million mt of alumina, slightly lower than the 2.54 million mt in 2024, meeting 46% of EGA's alumina demand.

Common.Time.minsAgo

February Aluminum Industry Average Cost Exceeds 7,700 yuan/mt

[SMM Flash: February Aluminum Industry Average Cost Exceeds 7,700 yuan/mt] According to SMM data, the domestic aluminum industry's tax-inclusive full cost average fell 0.9% MoM and 5.7% YoY in February 2026, mainly due to lower prices of raw material alumina and auxiliary materials. Aluminum profit margins expanded to 7,707 yuan/mt.

Common.Time.minsAgo

Domestic Bauxite Port Inventories Rise by 2.12 Million mt Week-on-Week

According to SMM's statistics on February 27, the total bauxite inventory at ten domestic ports increased by 2.12 million mt from the previous week.

Common.Time.minsAgo