Fed’s Kashkari Says AI Is Slowing Hiring at Large U.S. Companies

Minneapolis Federal Reserve President Neel Kashkari told CNBC that artificial intelligence is contributing to a slowdown in hiring among large U.S. companies, shaping labor market activity as 2026 begins. According to Kashkari, many large employers have reported that AI-driven productivity gains are allowing them to do more with fewer new hires, leading to a pattern of “low hiring and low firing.” Smaller firms, however, have not reported the same slowdown. Kashkari emphasized that this trend reflects how AI is influencing business strategies: while technology boosts efficiency, it may also lead firms to delay or reduce plans to add new workers. He framed this development as primarily a big-company phenomenon, rather than a broad-based workforce replacement. His comments come amid broader discussions about the labor market’s cooling trend and how technological change interacts with economic indicators such as productivity, inflation, and job growth. Policymakers are watching these dynamics closely as they consider implications for monetary policy this year. #FederalReserve #AIandJobs #LaborMarket #Economy #SlimScan #GrowthStocks #CANSLIM