@BillAckman is right here. The AI economy is a new paradigm. Raising rates right now could very well INCREASE inflation. The whole economy has been too accustomed to financing on low interest rate. Higher financing costs will get passed on to consumers in a way that contradicts all historical precedents. Higher financing rates for ai infrastructure spend will get passed through higher token costs, not crypto token but llm token costs. There is no way that the demand for tokens would decrease due to higher interest rate. Look at what
@Meta launched with Muse and that’s just the tip of the iceberg with retail adoption of the agentic economy. And as the economy becomes more agentic and ai-driven, more and more of it will be tied to token consumptions and costs. My prior
@federalreserve colleagues might disagree just as they had missed the Covid inflation when I raised it internally at the time. Please don’t miss it this time.