Walser: PCE Shows Intact Rate Cutting Cycle, A.I. Monetization Just Beginning

Market Overview - The market is experiencing positive momentum following a PCE report that did not indicate a need for a more hawkish stance from the Federal Reserve, suggesting potential for two rate cuts [1] - The labor market is pushing for rate cuts as it benefits employers by lowering costs, although immigration issues are complicating the labor supply situation [1][2] Federal Reserve and Interest Rates - Federal Reserve Chair Jerome Powell has indicated a cautious approach to rate cuts, acknowledging that while Wall Street desires easy monetary policy, current market valuations appear overheated [1] - The expectation of rate cuts is not solely dependent on monetary policy but also on the actual monetization of technologies like AI and blockchain [1][2] Technology and Monetization - The monetization of AI is seen as a critical factor for future economic changes, with expectations that significant transformations will occur within the next 36 months [2][3] - The current phase of monetization is just beginning, and the impact of AI will be extensive across various sectors, including driving, writing, and shopping [2][3] Tariffs and Economic Factors - Recent announcements regarding tariffs are highlighted as a wildcard that could influence market dynamics and economic conditions [3]