Joseph Gruber, chief economist and Director of Research at the Federal Reserve Bank of Kansas City, told business leaders, investors and economists that inflation, interest rates and artificial intelligence will remain the main forces shaping the U.S. economy in the months ahead, on Friday.
Hosted by UNO’s College of Business Administration at the Thompson Alumni Center, the Federal Reserve Economic Outlook Forum brought together attendees just days before Omaha welcomes thousands for Berkshire Hathaway’s annual shareholder meeting.
Gruber’s remarks offered timely insight into the economic issues likely to dominate discussions throughout the weekend, from stubborn inflation to the long-term impact of emerging technologies.
Gruber said inflation remains above the Federal Reserve’s 2% target, requiring policymakers to carefully balance price stability with maximum employment. He noted that businesses across the Kansas City Fed’s district, which includes Nebraska, continue to face higher costs related to fuel, tariffs and other inputs.
“Overall corporate profitability in the United States is actually really high,” Gruber said. “Firms have been able to navigate the shocks and maintain very high profitability.”
Artificial intelligence was another major focus of the discussion, particularly its potential to improve productivity and address labor shortages in sectors such as health care.
“If we don’t make it more efficient, I’m just not sure the math works,” Gruber said. “Hopefully AI can be part of that.”
During a Q&A session, attendees asked about Federal Reserve independence, inflation expectations and the nation’s growing debt. Gruber emphasized that political independence remains essential to effective monetary policy.
“Central banks that can make monetary policy decisions independent of political considerations generally lead to more effective outcomes,” Gruber said.
The forum also included remarks from Chancellor Joanne Li and College of Business Administration Dean Gurpreet Dhillon, followed by a moderated discussion led by Jane Liu, assistant professor of economics.