#bernd weidensteiner

The post Equities: AI Boom risks and resilience – Commerzbank appeared on BitcoinEthereumNews.com. Commerzbank economists Dr. Jörg Krämer and Bernd Weidensteiner argue that the AI-driven investment surge in US high-tech and IT is substantial but not yet excessive compared with past booms. They see early signs of faster US productivity, elevated equity valuations and profit expectations, and warn of potential corrections, yet conclude the AI boom and associated stock market strength are likely to persist for now. AI boom, valuations and bubble risk “The introduction of artificial intelligence has triggered an investment boom, particularly in the United States. The sheer scale of the resources being deployed increases the risk of a bubble. This could trigger a setback in the stock markets. We have assessed the risks and concluded that the boom is likely to continue for the time being.” “Furthermore, while stocks are expensive, they are valued lower than they were at the peak of the dot-c

The post Federal Reserve: No near-term hikes signalled – Commerzbank appeared on BitcoinEthereumNews.com. Commerzbank’s Dr. Christoph Balz and Bernd Weidensteiner interpret recent data and Fed communications as pointing to stable policy rates in coming months. Softer US inflation, a balanced FOMC, and forecasts for Fed funds at 3.75% through early 2027 before cuts to 3.50% support the view that markets overprice further tightening and that the next major move will be downward. Policy on hold before eventual cuts “The minutes of the Fed’s latest meeting reflect the concerns of Fed officials regarding inflation trends. There was agreement that inflation risks remain tilted to the upside and that the labor market is likely to remain stable, at least in the short term. Some meeting participants therefore even saw grounds for an interest rate hike, but ultimately supported the decision to keep key rates unchanged.” “During the discussion on the monetary policy outlook, significant differenc