Cathie Wood urges Federal Reserve to consider AI-driven deflation

Ark Invest CEO Cathie Wood has called on the Federal Reserve to account for AI-driven deflation, arguing that falling prices from artificial intelligence could justify a more accommodative monetary stance. Wood's case rests on the idea that AI productivity gains will push costs down, a disinflationary force she believes the central bank is underweighting in its policy calculus. The intervention matters because rate expectations are a key input for tech and crypto valuations, and a softer Fed path would support risk assets. Watch for whether Fed officials acknowledge AI deflation in coming communications and how rate futures reprice around those signals.