“Cathie Wood”: The deflationary force driven by innovation is building, and inflation could be lower than expected in the next 6 to 9 months

Odaily reported that “Cathie Wood” said on the X platform that despite the rise in oil prices over the past three months, the yield curve continues to flatten, and the Federal Reserve has not monetized this energy shock. The bond market may be starting to price in the deflationary impact of AI and technology-driven productivity gains. Currently, the costs of AI model training and inference have dropped significantly, productivity growth is accelerating, and unit labor costs remain subdued.

Although the current market narrative focuses on tariffs, deficits, and structurally high inflation, the underlying signals indicate that deflationary forces related to innovation are building. It is expected that inflation could be lower than anticipated over the next 6 to 9 months, which will have profound implications for interest rates and long-term stocks.