Markets Live: Forget Tariffs, It’s All AI-Led Growth

Summary

Ven Ram argues that AI-led growth, not geopolitics or tariffs, is the primary market driver, and expects markets to remain bid. He sees a case for the Fed to tighten if inflation overshoots and believes the Bank of England should hike sooner to contain inflation.

• Markets are focused on AI-led growth as the primary driver, ignoring geopolitics and tariffs.
• Ven Ram expects markets to stay bid as long as AI-driven earnings growth remains achievable.
• The Fed may need to raise rates if inflation exceeds its 2.7% projection.
• The neutral rate is estimated around 4.25%.
• The Bank of England faces pressure to hike sooner to avoid a rearguard action.
• September rate hike pricing for the BOE could be tested in coming weeks.