Fed: AI-driven growth complicates rate path – NBC
The post Fed: AI-driven growth complicates rate path – NBC appeared on BitcoinEthereumNews.com. National Bank of Canada’s (NBC) Senior Economist Jocelyn Paquet, argues that surging AI-related investment is keeping U.S. GDP growth above potential, with forecasts of 2.4% in 2026 and 2.0% in 2027. However, Paquet warns this strength, combined with a dovish Federal Reserve (Fed) stance, risks delaying a return of inflation to the 2% target and is reshaping expectations for USD rates. AI boom sustains growth and inflation “Is this a problem? In the short term, the answer to this question is probably no. With hyperscalers projecting up to $800 billion in AI-related spending by 2026, growth in the sectors mentioned above is more likely to accelerate in the future rather than slow down, and economic data tends to confirm this hypothesis.” “These developments lead us to believe that the worst may be over for households and that consumption growth could accelerate as the year progresses. If our