Strategy Report
Will AI Accelerate Productivity? Don’t Bet On It
New Fed Chair, Kevin Warsh, is betting that an AI-driven productivity acceleration will get the Fed out of jail for persistently missing its 2 percent inflation target. But history informs us that while new technology adoption is exponential, total productivity growth is not. So, if Warsh’s bet goes wrong, as is likely, the US inflation overshoot will persist. We discuss the investment implications. Plus, a new trade is short cotton.
Interested in the Executive Summary of this report?
Get instant access to this Executive Summary from BCA Research.
BCA Research | Counterpoint
A global macro strategy which uniquely synthesizes macroeconomics with psychology, behavioural finance, non-linear systems, complexity, and fractal analysis.
Topics
Stay Connected with BCA
Get our latest events and research insights delivered to your inbox.