Post-AGI economy could challenge the Fed’s employment mandate

A post-AGI, post-abundance economy in which artificial general intelligence performs all human labor could make the Federal Reserve’s employment objective difficult to interpret. The scenario raises questions about how a central bank should operate if human labor is no longer needed.

One view is that policy might shift from supporting employment and limiting inflation to maximizing unemployment and minimizing prices—in effect, pursuing deflation if goods and services became essentially free. The discussion does not specify what mandate or policy framework would replace the current one.