AI Boom, Dollar’s Decline and Sticky Inflation
Bloomberg.com••general
Key Points:
- Wall Street firms overwhelmingly view artificial intelligence (AI) as a revolutionary technology and a key driver of economic growth and equity markets in 2026, despite acknowledging associated risks such as high expenditure and uncertain returns.
- Major investment institutions like Fidelity International, BlackRock, and NatWest express strong optimism about AI fueling global expansion, with JPMorgan emphasizing the risk of missing exposure to this transformational technology.
- Conventional risks such as geopolitical tensions, trade barriers, and a weakening US labor market persist, but supportive macroeconomic policies—including potential Federal Reserve easing and fiscal stimulus in the US and Germany—are expected to sustain growth.
- Elevated asset valuations, ongoing US tariffs, and persistent inflation pose challenges, with concerns about structural instability including global fragmentation, a weakening dollar
