Morgan Stanley: "Arguments that AI will be disinflationary and lead to lower policy rates should be re-examined and possibly rejected. First, the state of the business cycle will dominate. Second, the disinflationary effect is one of many; more productivity should also mean more demand, both through consumption and investment spending. Finally, faster productivity growth means higher equilibrium interest rates – r*, as economists say – further confounding the case for rate cuts. The simple argument is almost surely wrong."(zerohedge)