Central banks, including the Federal Reserve and the Bank of England, have become highly responsive to incoming economic data, which increases the risk of policy errors.

The question of whether artificial intelligence will be an inflationary or disinflationary force is a key uncertainty that investors and central banks are currently grappling with.

Seema Shah believes the most likely near-term policy for the Federal Reserve is to keep interest rates on hold.

The U.S. economy remains strong, with recent labor market, consumer inflation, and producer inflation data all surprising to the upside.

The U.S. economy is outperforming expectations, while economies in Europe and Asia are more exposed to the negative impacts of geopolitical conflicts.