The Federal Reserve is approaching artificial intelligence (AI) with caution, with limited involvement. Meanwhile, interest rates remain a key focus. Currently at 4.50%, rates are expected to drop to 4.25% this quarter. Long-term projections suggest rates will trend around 3.50% in 2026 and 3.25% in 2027. The Fed remains open to all possibilities regarding interest rates, prioritizing economic stability. With a commitment to a 2% inflation target, the Fed aims to balance growth and price stability. This cautious approach reflects the institution's careful consideration of economic factors and potential implications for the US economy. Stability is key.