AI dampens inflation, markets underestimate impact on rates

Foto: derschoeneali via Pixabay
Foto: derschoeneali via Pixabay
AI is quietly reshaping the cost base of the US economy by replacing labour and making processes more efficient. In services in particular, this is reducing unit labour costs and easing inflationary pressures. The bond market, however, has yet to fully recognise the policy room this creates for the Federal Reserve.

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