U.S. labor productivity surged by 4.3% year-over-year in early 2026, driven by rapid adoption of AI and automation across industries. This unprecedented growth boosts wages and corporate profits without fueling inflation, challenging previous economic assumptions. The productivity boom gives the Federal Reserve room to maintain steady monetary policy while the economy expands.
Gary Marcus argues that China has made significant progress in AI and technology, catching up to or surpassing the US in key areas. He suggests that US policymakers have been overly focused on safety concerns while neglecting the competitive threat posed by China's rapid advancements.
Anthony Pompliano tweets that America is the world's energy capital, reacting to a video of Jensen Huang stating that the amount of energy needed for computing will likely be 1,000 times greater than current levels.