The Illusion of Control The Federal Reserve likes to project certainty. Models. Forecasts. Neutral rates. Dot plots. But what happens when the economy shifts faster than the models can process? Artificial intelligence is doing exactly that. We are witnessing one of the largest capital spending booms in modern history. Data centers are rising across America. Semiconductor plants are absorbing billions in subsidies. Electricity demand — once flat for years — is surging again. And central bankers are staring at dashboards that no longer behave predictably. The question is no longer “What is inflation doing?” The question is: What is AI about to do next? Productivity Boom — or Statistical Mirage? Some policymakers argue AI will trigger explosive productivity gains. If…
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