Survey: Over 60% of economists disagree with Walsh's "AI-driven rate cut theory"

BlockBeats news, on February 9, according to the Financial Times, the Clark Center for Global Markets at the University of Chicago surveyed 45 economists this week. Nearly 60% disagreed with Walsh's "AI rate cut theory," stating that the impact of AI technology on prices and borrowing costs over the next two years is likely to be minimal. They expect the decline in PCE inflation and the neutral interest rate over the next two years to be less than 0.2 percentage points.

About one-third of respondents said that the AI boom could even force the Federal Reserve to slightly raise the so-called "neutral interest rate," at which borrowing costs neither stimulate nor restrain demand.

This survey shows that it may be difficult for Walsh to win the support of other Federal Open Market Committee (FOMC) members for the prospect of a rapid productivity boom driven by AI. This would make it difficult to cut rates on the scale Trump desires before the midterm elections in November.