In regards -
To the Labor market.
This is where Treasury (Bessent) and the Fed would be (Totally Wrong).
No amount of Fed cuts will keep the Unemployment rate from rising further.
This is due to (2) things -
AI promoting gains in productivity, and efficiency; reducing the need for employees over time (mainly in computer-driven jobs, including manufacturing (AI robots) in the future; this is where the Trump thesis is (Totally Wrong) in regards to bringing back manufacturing to the U.S. (employee-wise).
Risks to (rising) Inflation (to the Real consumer-driven (68% of GDP economy) over time increasing Stagflation - High Inflation - Low Growth.
The (Major Downside to AI) while it may lead to increased GDP growth.
AI does (not) pay Tax revenues (replacing Employees that (actually) do).
As the U.S. National debt (exponentially) keeps rising, now past $38.2 Trillion with Interest paid to outside Investors (U.S. based, Japan; China; etc.) of $969.0 Billion a year (almost a Trillion) by U.S. taxpayers; it becomes a (Much bigger) problem weighing on the Real consumer-driven (68% of GDP) U.S. economy (where there are (currently (7) debt Bubbles) at (record) levels.
The (7) Debt Bubbles (at record levels) are Household Debt, Housing, Credit Card, Automotive, Student Loan, and Stock purchase financing.
(All) of these (7) Debt Bubbles are in the Trillions and keep rising, with (Defaults) are an ever-growing problem over time.