Musalem: Economy is strong based in part on AI optimism
SPY•St. Louis Fed President Alberto Musalem said U.S. economic strength partly depends on optimism about the developing AI industry, creating a downside risk if expectations are not met.
1. AI optimism and growth
Musalem said the U.S. economy is very strong, with corporate profits also strong and growth at or above its long-run trend. He said a lot depends on the brighter future investors are pricing in for AI actually materializing, calling the situation very concentrated.
