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Latest / Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes

How AI Productivity Paradoxes Fuel Stagflation

We examine the disconnect between surging AI investment and sluggish real GDP growth of just 1.5 percent in Q2 2026. With core PCE prices holding near 336 and unemployment steady at 4.1 percent, we explore why technological leaps aren't yet lowering consumer costs or boosting wage growth as expected. This episode dissects the lag between capital expenditure and tangible economic output.

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