A burst of US productivity, possibly powered by AI, is helping contain inflation—but it may also mean the Federal Reserve is pursuing an easier monetary policy than it should. If efficiency gains are lifting America’s neutral rate, then policy ought to tighten, not loosen.
America’s labour productivity is rising—This should imply a higher neutral rate of interest and tighter Fed policy
📅 Published: January 12, 2026 |
📂 Category: Uncategorized
