Nouriel Roubini Expects Close to 4% US Growth by End of the Decade

• US potential growth is expected to accelerate, reaching close to 4% by the end of the decade, driven by AI, semiconductors, robotics, quantum computing, and other advanced technologies.
• Contrary to some views, higher potential growth implies higher equilibrium real interest rates, suggesting the Federal Reserve will find it difficult to justify significant rate cuts this year.
• Longer-term, while technology will drive exponential growth, it will also lead to massive permanent technological unemployment, necessitating a universal basic income (UBI) and wealth redistribution through progressive taxation to maintain social stability and aggregate demand.

Nouriel Roubini, known as 'Dr. Doom,' now predicts a 'Dr. Boom' scenario for the US economy, forecasting potential growth near 4% by the decade's end, fueled by advanced technologies like AI. He argues this robust growth will lead to higher equilibrium interest rates, making Fed rate cuts unlikely, and will eventually necessitate wealth redistribution to address technological unemployment.