2026 Clemens Lecture titled “The Federal Reserve Under Pressure” brought to St. Bens

Artificial intelligence, rising costs and the growing national debt are reshaping the American economy, but how policymakers respond to these challenges determine whether technological progress benefits the public or intensifies already existing inequalities. Those questions shaped a Clemens Scholar luncheon Monday featuring Christina Romer, an economist and chair of the Council of Economic Advisers under former president Barack Obama, alongside CSB+SJU professor Louis Johnston and this year’s Clemens Scholars, CSB seniors Josey Jackson and Sienna Maciej.

Held ahead of the annual Clemens Lecture Monday evening, the luncheon offered students an opportunity to engage directly with Romer about her career, economic research and the ongoing policy challenges facing the United States in the 21st century. Romer, a professor at the University of California, Berkely, is widely known for her research on the Great Depression and economic recovery. The conversation moved between her experiences in the Obama administration during the Great Recession and the emerging economic consequences of artificial intelligence.

Reflecting on that experience, Romer described the importance of collaboration in both academic research and public service. Although much of an economist’s work can be solitary, she said, working with others can strengthen research and create a greater sense of shared purpose. Her time in the White House was particularly meaningful because of the opportunity to work alongside a team confronting an urgent national crisis.

“It was the hardest two years of my life,” Romer said, describing her time in the administration. “But it was the ones I will take to my grave remembering just the time I felt the most connected to a group of people and a purpose.”

That connection between academic expertise and public service remained a critical theme throughout the rest of the discussion. Romer reiterated that economic policy should be grounded in evidence and informed by people who understand the issues being addressed. She recalled presenting economic research directly to Obama, who expected advisers to support their recommendations with evidence. Romer argued that this approach to policy making is increasingly important at a time when expertise is often questioned across fields ranging from economics to medicine and science.

The discussion also explored the Federal Reserve, particularly the importance of its independence from political pressures. Romer explained that monetary policy is more complicated than simply raising or lowering interests rates. While the Federal Reserve has significant influence over the economy, its ability to control inflation and sustain economic growth has limits. She argued that policymakers must understand those limitations rather than assume that monetary policy can easily resolve every economic problem.

The luncheon discussion shifted to addressing the potential economic consequences of the rise of artificial intelligence, which Romer described as both an opportunity for economic growth and a source of significant uncertainty. AI could increase productivity, accelerate medical discoveries and expand what the economy is capable of producing. However, she cautioned that technological progress could also displace workers and concentrate wealth among the companies and individuals who own the technology.

“I think AI could either be a blessing or a curse,” Romer said. She pointed out that preparing for these changes requires more than simply encouraging innovation. Policymakers must also consider how workers will transition into new careers, how displaced employees will support themselves and how the economic gains generated by AI might be distributed. Romer suggested that governments may need to expand opportunities for retraining and reconsider policies that currently make it easier to invest in technology than in workers. She raised concerns about the potential risks of AI, including cybersecurity threats, arguing that stronger safeguards and regulation deserve greater attention.

For college students preparing to enter an increasingly uncertain labor market, Romer offered a message centered on adaptability and human connection. Rather than focusing exclusively on technical skills that AI might have the capacity to replicate, she encouraged students to develop their abilities to communicate, collaborate and work through complex problems together.

“There will still be jobs for human beings,” Romer said. “The spark is, I think, still going to come from human beings.”

For students who attended the luncheon, the discussion also offered an opportunity to see how economists can shape public policy and serve as role models for future generations. Tess Cavanaugh, a senior majoring in economics with a minor in theology, said she was particularly inspired by Romer’s career and her contributions to economic policy, including her work in the Obama administration and research on monetary policy.

“I have not had many female role models in economics, and so being here was really inspiring,” Cavanaugh said. “To see a woman so poised and so confident, talking about something that is a male-dominated field, was really inspiring.”

Professor Louis Johnston, who studied under Romer at Berkeley and was her first doctoral student, contributed an economic historian’s perspective to the discussion. He connected the challenges posed by AI to broader questions about how public policy can help workers adapt to technological change. The conversation turned to the rising cost of living, student debt and the growing federal budget deficit. Romer argued that addressing affordability requires looking beyond inflation to consider how income and economic opportunities are distributed. Both Romer and Johnston emphasized the importance of investing in education and making career transitions more accessible, particularly as technological changes reshape the workforce.

For Jackson and Maciej, the luncheon offered an opportunity to participate in a conversation connecting economic theory with the decisions that shape people’s everyday lives. Their participation alongside Romer and Johnston brought the perspectives of current students into a discussion involving academic research, economic history, and national policymaking.

Ultimately, Romer argued that the challenge facing the next generation is not simply how to develop new technologies, but how to ensure those technologies improve people’s lives.

“How do we take what may be the greatest technological advance ever and have it tremendously improve human life, not wreck it?” Romer asked. “I think that is going to be the challenge of the generation to come.”

The luncheon provided an experience for students to consider that challenge before the evening’s Clemens Lecture, connecting economics to questions of public reasonability and the future of American prosperity.