Survey: Over 60% of Economists Do Not Agree with Wash's "AI Rate Cut Theory"

BlockBeats News, February 9 — According to the Financial Times, the University of Chicago’s Clark Center for Global Markets surveyed 45 economists this week. Nearly 60% of them do not agree with Wash’s “AI rate cut theory” and believe that the impact of AI technology on prices and borrowing costs over the next two years may be minimal. They expect the decline in PCE inflation and neutral interest rates over the next two years to be less than 0.2 percentage points.

About one-third of respondents indicated that the AI boom might even force the Federal Reserve to slightly raise the so-called “neutral interest rate,” at which borrowing costs neither stimulate nor dampen demand.

This survey shows that it may be difficult for Wash to gain support from other members of the Federal Open Market Committee (FOMC) for the prospect of rapid productivity growth driven by AI. This would make it hard to cut rates as much as Trump hoped before the midterm elections in November.