AI Hopes vs. Fed Fears: Dueling Forces Determining Economy and Markets in 2023

• Fate of US economy and stock market this year may depend on AI conference optimism vs Fed's restraint on interest rates • Stock market excited about AI possibilities, less concerned about rates/inflation • Fed trying to curb inflation without harming economy, but may need to hold rates high to prevent asset bubble • High rates adding to consumer debt burden, potentially contributing to voter dissatisfaction • If consumers tapped out, Fed's attempts to steer economy could falter