If AI Fails To Deliver On Its Vast Productivity Promises, The Result Will Be A Devastating Depression

Moments after the Fed's surprising decision to not only cut rates but to launch Reserve Management Purchases, QE Lite, Not QE, or whatever one wants to call it, we said that, in response to Powell's comment that the implication of the Fed's rather bizarre forecasts is higher productivity spawned by AI, the US might as well "do $10 trillion fiscal stimulus for AI/data center capex? Fed joins Musk in betting on AI revolution." After all, if you are going all in and still printing the world's reserve currency, at least make sure you will emerge victorious from the civilizational AI war with China... as anything else would represent the way of the Western way of life. 

*POWELL: IMPLICATION OF FED FORECASTS IS HIGHER PRODUCTIVITY

In that case why not do $10 trillion fiscal stimulus for AI/data center capex? Fed joins Musk in betting on AI revolution.

— zerohedge (@zerohedge) December 10, 2025