The AI Economy Is Leaving Labor Behind | Weekly Roundup

In this episode of Forward Guidance, Tyler and Felix discuss the recent volatility in market expectations regarding Federal Reserve policy, noting the rapid shifts in sentiment despite a lack of new economic data. They attribute this to the Fed's attempts to manage market expectations and highlight the impact of systematic macro positioning and pension rebalancing on market dynamics. The conversation shifts to the potential impact of AI on the economy, with concerns raised about the concentration of benefits and the need for broader fiscal policies to support the middle class. They also touch on the political incentives driving policy decisions, particularly in relation to the upcoming elections, and explore alternative investment strategies beyond the Mag7 and hyperscaler AI trades. The hosts analyze the potential for a shift in Fed policy in 2026, discussing potential candidates to replace Powell and the implications for inflation and market behavior. Finally, they discuss Mike Green's analysis of wealth inequality and the poverty line, agreeing on the need for structural policy changes to address the growing gap between the wealthy and the poor.