The Fed just finished another meeting, and as expected, no rate cuts. Powell kept repeating “uncertainty,” meaning they’re still unsure about where the economy is heading. The data is giving mixed signals—hard data looks strong, but soft data is weak.
Hard data includes actual numbers like GDP, job reports, and retail sales. These are still holding up well, so the Fed doesn’t see a reason to rush into cutting rates. On the other hand, soft data includes business surveys and consumer confidence, which show that people and businesses are worried about the future. But since this hasn’t fully reflected in real economic numbers yet, the Fed is waiting and watching.
Now, here’s where it gets interesting. If the economy starts weakening and layoff news starts coming in, the AI narrative will take over. Companies will say, “We’re becoming more efficient with AI, so we’re cutting jobs.” Wall Street loves this kind of story. AI stocks like NVIDIA and Microsoft will pump because investors will believe AI is replacing workers and making businesses more profitable.
The same thing will happen in AI crypto.
It won’t just be AI stocks pumping—AI crypto will move the same way. When AI hype picks up, projects like TAO (Bittensor), FET (Fetch.ai), and VANA (Vana Network) could have a strong rally.
Blockchain-based AI platforms will also grow.
Investors will see AI + crypto as “the future” and start buying in, just like the metaverse trend in 2021.
AI-focused projects related to model training, data sharing, and distributed computing—like Render, IO, and some upcoming decentralized data projects—could also be bullish.
The reality is, the economy is getting weaker, and companies are using AI as an excuse to cut costs. This has happened before—first with automation, then outsourcing, and now AI.
If AI stocks pump, AI crypto projects will follow, but the real question is how much actual utility these projects will have.
Layoff news coming = My bet on AI. Nothing too big, just catching a good trade to cover the next few months’ living costs.
