Apollo's Torsten Sløk on the 'very, very important issue' facing the US economy

分组1 - The Federal Reserve is concerned about the potential impact of AI on the labor market, indicating that many jobs could be at risk due to AI advancements [1][4][5] - Jobless claims remain low, and while the unemployment rate has slightly increased, there are no dramatic productivity gains or significant rises in unemployment observed yet [2][3] - The macroeconomic effects of AI are still uncertain, particularly regarding its implementation and adoption rates in the coming years [6] 分组2 - Affordability has become a politically sensitive issue, with rising costs in education, healthcare, and housing affecting consumer spending [9][10] - The Federal Reserve has limited tools to address the affordability crisis, as rising prices in essential goods cannot be easily managed through monetary policy [11][12] - Fiscal policy, particularly actions from Congress, may be necessary to address affordability issues, such as lowering tariffs on food and providing subsidies for first-time homebuyers [14][16][17] 分组3 - The potential for a new inflationary cycle exists due to economic growth driven by AI and fiscal policies, which could lead to increased capital expenditures [19][20] - The market is experiencing a rally, possibly due to expectations of economic growth and the effects of recent rate cuts by the Federal Reserve [22][25] - Disagreements within the Federal Reserve regarding interest rate cuts may indicate a shift towards more politicized decision-making, which could impact market stability [31][32]