Rate Cut Policy Sparks Inflation Concerns
Fed official Schmid recently warned that further interest rate cuts could have negative consequences, especially by prolonging the period of high inflation.
This statement has triggered market concerns about inflation trends, especially in the context of unclear economic recovery progress.
AI's Productivity Impact Questioned
Schmid also noted that while AI technology is advancing rapidly, its real impact on overall economic productivity still needs further observation and verification.
- AI has not yet achieved large-scale application in many industries
- Technology implementation still faces challenges in data and security
- Impact on economic growth remains limited in the short term
Central Bankers Face Difficult Choices
Facing complex economic conditions, the Fed faces a difficult balance between maintaining growth and controlling inflation.
Experts suggest that policy-making should focus more on structural adjustments rather than relying solely on monetary tools.