Special Encore: 2026 Global Outlook: Slower Growth and Inflation

Serena Tang and Seth Carpenter discuss Morgan Stanley's economic outlook for 2026, highlighting a slightly slower global economy with drifting inflation. They anticipate the U.S. to be a key growth driver, with potential upside and downside risks largely stemming from U.S. economic performance. They also touch on the Federal Reserve's likely path of rate cuts, contrasting it with the European Central Bank and the Bank of Japan's expected policies. The conversation also covers the impact of AI, emphasizing its current demand-side effects through capital expenditure and its future potential to boost productivity on the supply side. They provide numerical forecasts, including global GDP growth and U.S. growth, while acknowledging the evolving economic landscape and the potential for surprises.