“AI-induced job loss might cause the Fed to be less concerned about inflation.”
This sounds more bullish bonds because low inflation concerns → fed can cut. Also (more importantly) the fed has a dual mandate so low employment → cut.
That’s mostly bearish for bonds because it increases inflation.
“AI-induced job loss might cause the Fed to be less concerned about inflation.”
This sounds more bullish bonds because low inflation concerns → fed can cut. Also (more importantly) the fed has a dual mandate so low employment → cut.
That’s mostly bearish for bonds because it increases inflation.