Artificial intelligence could fundamentally reshape financial markets and force central banks to rethink monetary policy communication and regulation, according to Princeton economist Markus Brunnermeier. He warned that AI-powered trading systems could anticipate policy decisions faster than humans, creating “asymmetric understanding” and potentially increasing market volatility and manipulation risks.

Princeton economist Markus Brunnermeier warns at Jackson Hole that AI could outsmart central banks, destabilize markets, and force radical policy

Princeton's Markus Brunnermeier warned at Jackson Hole that AI could outpace central bankers, proposing separate press conferences for humans and