The Fed ‘NEEDS' to change their view, ‘afraid' of lowering rates, economist says

• The Federal Reserve's view that economic growth causes inflation is not supported by data, and lowering interest rates is crucial for managing government debt.
• Trump's economic policies led to real wage growth, and markets are forward-looking, indicating positive economic prospects for 2026/2027.
• New York City's proposed millionaire and corporate tax hikes are seen as detrimental, likely leading to an exodus of wealthy residents and businesses.
• AI will disrupt labor markets, but historical precedent suggests technological advancements lead to increased productivity and new job creation, rather than mass unemployment, though the speed of AI adoption is a new factor.

Economist Tomas Philipson criticizes the Federal Reserve's current inflation view, advocating for lower interest rates to manage government debt. He expresses optimism for Trump's economic policies, citing real wage growth and forward-looking markets. Philipson also criticizes New York City's proposed wealth tax, predicting an exodus of high-income earners, and discusses AI's impact on labor, emphasizing historical adaptability over job destruction.