Williams expects GDP growth of about 2.5 percent this year driven by fiscal stimulus, financial conditions, and AI investment.
“I expect real GDP to grow about 2-1/2 percent this year, supported by stimulus from fiscal policy, favorable financial conditions, and robust investments in artificial intelligence.”
Williams warns AI-driven execution could reduce trade sizes but increase opaqueness and risks in FX markets.
“Although AI-supported algorithmic-based execution could minimize market impact, it could potentially increase opaqueness and impact the ability to identify emerging risks.”
Williams says AI has made previously infeasible economic history research possible by enabling document analysis.
“Sergio, Stephan, and Emil’s work 3 on bank runs, to take what I think will become a representative example, was in a way almost infeasible prior to the ability to smartly read an immense amount of documentation.”