Daniel(@danielisdizzy):Kevin Warsh's view is clear: AI will eventually force interest rates lower because it will be highly deflationary. "AI is going to make almost everything cost less. We're at the front end of a productivity boom." The problem is that today's economy is telling a different story. Inflation is at 4.2%, its highest level in three years. Tensions with Iran continue to threaten oil supplies. The labor market remains strong. AI may be deflationary in the long run, but the Fed has to deal with today's inflation first. I don't expect a single rate cut before the end of 2026.

2026.06.11 15:27

Kevin Warsh's view is clear: AI will eventually force interest rates lower because it will be highly deflationary. "AI is going to make almost everything cost less. We're at the front end of a productivity boom." The problem is that today's economy is telling a different story. Inflation is at 4.2%, its highest level in three years. Tensions with Iran continue to threaten oil supplies. The labor market remains strong. AI may be deflationary in the long run, but the Fed has to deal with today's inflation first. I don't expect a single rate cut before the end of 2026.