Federal Reserve: AI related investments drive strong output growth, Iran war uncertainty remains major risk Odaily Planet Daily News: The Federal Reserve's semi annual report shows that overall economic activity in the United States will maintain steady expansion in 2026, mainly driven by high-tech investment and government spending. Factory output will grow strongly due to investment in AI related data centers, and production capacity will continue to improve. But the housing market has stagnated, and the external economy is struggling to grow due to the Middle East conflict and tariffs. The labor market is generally stable, with both wages and productivity increasing. However, the slowdown in immigration has led to a decrease in labor supply, and small businesses and households still face tight credit conditions. Inflation remains high and further rises in the spring, with asset prices higher than historical norms. The overall financial system is stable, with sufficient bank reserves, and although there is some redemption pressure in the private credit market, it is still operating normally. Long term inflation expectations are largely anchored around the 2% target, but the uncertainty brought about by the Iran war remains the main risk. (Golden Ten)