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  1. Goldman Sachs23 min

    Why the Fed’s Hawkish Turn Could Support the AI Boom

    Tony Pasquariello, Josh Schiffrin, Dominic Wilson

    New Federal Reserve Chair Warsh signaled a data-dependent approach focused on price stability while the committee's uncertain dot plot and absence of forward guidance prompted a hawkish market reaction. Panelists interpret current conditions as a mid-cycle adjustment driven by falling oil prices from geopolitical shifts and resilient AI-driven equity momentum rather than impending recession. This unique environment, characterized by rapid narrative shifts and robust capital absorption, suggests a high-velocity economic landscape distinct from the stagnation of previous years.