AI Is Repricing Capital Before It Reprices The Economy

AI Is Repricing Capital Before It Reprices The Economy Authored by Cory Frank via RealClearMarkets, Earlier this month, the Federal Reserve raised the target range for the federal funds rate by 25 basis points, to 3.75 to 4 percent. Inflation remains elevated even as economic activity continues to expand, productivity is strong and capital investment remains robust. At Jackson Hole a few weeks earlier, Fed Chairman Kevin Warsh highlighted another unusual feature of the economy. Business capital spending is rising rapidly, and he estimated that more than half of its growth this...