The Distracting Hype of AI: Serious Economic Threats in the US.

The US economy may be facing serious threats that are being overshadowed by the hype surrounding artificial intelligence (AI), warns a recent article. While AI has led to strong stock performances for companies big and small, investors fear that the focus on such technologies may distract from other issues that have the potential to hurt Wall Street. For instance, the Federal Reserve’s steep hike in interest rates over the past 15 months presents a 70% chance of a downturn by next year, according to the bank’s own recession probability model. Some analysts suggest that AI optimism could lead to a dampening effect if corporates’ budgets are trimmed due to economic pressures.
Meanwhile, the S&P 500 recently suffered a losing week following five weeks of gains. The Nasdaq also ended an eight-week winning streak with below-average volume. Harvard researchers have further warned that home buying remains historically low, and affordability is among the worst it has been in decades. The article concludes by pointing out the need to focus on serious economic issues to ensure long-term stability, rather than relying solely on the potential of leading technologies.