The post The two beefs that will reshape our global economy and the future of AI next year appeared on BitcoinEthereumNews.com.

Two brutal battles are set to define next year. One threatens to rip apart the foundations of the global economy. The other could rewrite the future of artificial intelligence. On one front: Donald Trump, the president-elect, ready to bulldoze Jerome Powell and the Federal Reserve over interest rates. On the other: Elon Musk and Sam Altman, two former allies turned enemies, locked in a war over OpenAI, xAI, and control of the AI industry. Trump’s beef with Powell Trump and Powell’s first round wasn’t pretty. During his first term, Trump blasted the Fed and Powell for not slashing interest rates fast enough, calling them “boneheads” and the “enemy.” He even floated the idea of firing Powell and tried stacking the Fed board with loyalists who would do his bidding. It didn’t work. Powell held his ground, and rates didn’t plunge to the zero levels Trump demanded. Now, Trump’s back, and so is the fight. During his campaign, Trump promised “interest rate cuts the likes of which you have never seen before.” That’s great for voters drowning in expensive mortgages and credit card debt. But it’s bad news for Powell, who has spent years trying to wrestle inflation under control. The Fed raised interest rates aggressively in 2022 and 2023, trying to cool off runaway inflation. Borrowing costs soared, and the economy slowed. But inflation is still higher than Powell wants. Rates currently sit at 4.6%, and the Fed plans to lower them slowly, hitting 3.4% by the end of 2025. That’s nowhere near the near-zero rates Trump wants. The economic situation complicates everything. Growth is strong. Jobs are stable. But inflation still lingers. Trump’s economic plans could make things worse. He wants to slap new tariffs on trade partners and deport immigrants, moves that could drive up prices and tighten…

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Filed under: News - @ December 17, 2024 11:21 am