On The Fed & AI, Italy’s Growth & Q4 Earnings

FOMC officials agree: AI proliferation is a seismic macroeconomic force that will impact GDP growth, inflation, and the labor market. But they’re divided on the precise impacts and timing. Today, Melissa reads between the lines of Fed officials’ public statements concerning AI to tease out the implications for monetary policy. Paradoxically, the reasoning of both the AI bulls and the AI bears implies holding the federal funds rate right where it is. … Also: Italy’s economy is on a roll. William discusses why, drawing comparisons to Japan’s economy. … And: Joe’s data on the Q4 earnings of S&P 500 companies suggest record-high earnings and broad-based strength across sectors.