Peter Orszag predicts a surge in inflation amid accelerating economic growth

Lazard Investment Bank CEO raised an important issue regarding macroeconomic imbalance risks at the Wall Street Journal Invest Live forum. According to ChainCatcher, Orsag foresees the possibility of unforeseen inflationary acceleration this year, linking this phenomenon to the Federal Reserve’s decision to cut interest rates at the end of 2025. His analysis indicates the complexity of interactions between monetary policy and real economic dynamics.

Why the decision to cut rates could create macroeconomic imbalances

Orsag pointed out that the current actions of the Federal Reserve may lag behind the evolving economic conditions. In his view, aggressive rate cuts could potentially weaken the US dollar’s position in the global market and extend the yield curve. This scenario creates a paradoxical situation where policies aimed at stimulating economic growth through easier credit simultaneously reduce the competitiveness of the national currency.

Artificial intelligence — the new engine of economic growth

Lazard’s leader highlighted artificial intelligence as one of the key factors capable of accelerating U.S. economic growth. Technological breakthroughs in AI open new opportunities for productivity and innovation across all sectors of the economy. This phenomenon acts as a significant counterbalance to inflationary risks, providing conditions for sustainable economic expansion.

High-income consumers as drivers of consumer demand

Alongside the analysis of technological influences, Orsag emphasized the role of affluent consumers in shaping economic growth rates. High-income groups are more willing to increase consumption and investments, creating an additional impulse for economic development. Their activity serves as an important factor in maintaining growth momentum even amid monetary uncertainty.