Updated: 3 Dec| Published: 2 Dec
Federal Reserve Chairman Jerome Powell compared economic uncertainty to "driving a car in the fog" as the US economy faces mixed signals following a historic government shutdown and a shift toward AI-fueled growth.Alexandra Stråberg of Länsförsäkringar highlighted the potential risks of an overheating AI sector, warning that excessive optimism could trigger a recession next year despite expectations for a "soft landing".Erik Thedéen of the Riksbank echoed concerns about high stock valuations and financial risks linked to the AI boom, while emphasizing the importance of central bank independence and caution around easing mortgage rules.
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