Analyst: Rising long-term interest rate expectations from the Federal Reserve validate the impact of large-scale AI investment.

BlockBeats news, September 17 — Analysts noted that, interestingly, the Federal Reserve's Summary of Economic Projections showed the longer-run projection for the benchmark rate was rounded up to 3.2%, up from 3.1% previously. This effectively means Fed officials see a higher neutral rate — the rate level that in theory neither stimulates nor restrains economic growth and inflation.

Many economists believe the massive AI investment boom has pushed this rate higher. Warsh himself recently said that over the past decade and a half, the U.S. economy has shifted from a savings glut to an investment surge. (Jinshi)