Fed's Barr: AI effects may be hurting hiring in some sectors

Nov 6 (Reuters) - Federal Reserve Governor Michael Barr on Thursday said the adoption of artificial intelligence tools by employers may be slowing hiring in some sectors.

AI may be one of the dynamics that may be affecting the low-hiring part of the low-hire, low-fire job market environment, Barr said in a video-streamed event. Barr also said he sees a big gap in the economy now between those in the upper 40% of income and wealth and everyone else, a dynamic of what he called a "two-speed economy."

Barr, who stepped down about a year ago from his role as the vice chair for supervision after President Donald Trump's election win, also said the Fed has made progress on inflation but there is still work to be done.