US Economy Slows Down But AI Bubble Might Pop Like A Malfunctioning Soda Can
KEY POINTS
- •The OECD forecasted on Tuesday that U.S. economic growth will slow to 1.7% in 2026 from 2% this year.
- •They pointed to worsening job market growth and price increases caused by tariffs as major challenges.
- •Inflation is expected to rise from 2.7% this year to 3% next year, despite calls for interest rate cuts.
- •A key risk highlighted is a potential burst of the AI-driven stock market bubble impacting the overall economy.
On Tuesday, the Organization for Economic Co-operation and Development, aka OECD (the fancy group prepping doom reports), predicted the US economy will stumble to a 1.7% growth rate in 2026, down from a meh 2% this year. They blamed tariffs, a weakening job market, and a sneaky inflation hike from 2.7% to 3% next year — because who doesn’t want to pay more for their avocado toast? They also warned a massive AI stock market bubble, pumped full of sci-fi hopes, could burst and slam the brakes even harder. Interest rate cuts "appear warranted" though, so someone’s at least trying to buy us off with loose money as the economy awkwardly shuffles forward.
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US economy is throwing a party called ‘Slow Growth 2026,’ but beware: AI stock bubble is that clueless drunk who might spill it all on your new shoes.
The US job market is limping, inflation is on the rise, and AI stocks are basically hot air—it's like Wall Street is playing Jenga on a trampoline.
OECD says tariffs and AI hype are killing growth because nothing says economic stability like hoping your robot overlord stocks don't implode.
Source: Axios | Published: 12/2/2025 | Author: Ben Berkowitz
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