FundStrat's Newton: Why Not Replace The FOMC With AI?

Fundstrat's Mark Newton argued during a ZeroHedge debate that automating the Federal Reserve could resolve the uncertainties surrounding monthly rate changes. He cited incoming chair Kevin Warsh's plan to eliminate 'forward guidance,' suggesting reduced communication could alter how policy is perceived. Newton noted the Fed's hawkish committee while an administration oftentimes seeks rate cuts, framing Warsh's challenge as balancing these pressures. He questioned the value of the current process and even proposed that AI could someday automate the entire FOMC, arguing the tools used today are dated. Newton warned that the transition could spur volatility as markets recalibrate, and he predicted the AI-driven regime change could extend into 2028, with the AI theme remaining intact into the 2020s. The discussion also touched on the technology trade, including an RSI signal of 78 on the Invesco Equal Weight Tech ETF, as a near-term indicator within a longer-term bullish AI narrative.