Bloomberg Surveillance · Wednesday, September 23, 2026
Matt Lozetti of Deutsche Bank states that robust demand and AI-related investment are driving nominal GDP growth, which is currently at 6.5% year-over-year. He believes inflation will decline over time with Fed tightening, though some slowing in real growth is expected.
“We're at 6.5% nominal GDP growth year over year. And so I think last week when we were chatting, there's been a lot of maybe pushback on the Fed for hiking into a supply shock. And And it is true that there are supply shocks ongoing. But I think we've been arguing that there's also a pretty robust demand backdrop driving nominal GDP growth higher.”
“Our baseline is that we will see inflation come down over time. But it's been our baseline that the Fed needs to tighten monetary policy to get there. So you probably have some slowing over time in real growth, but also inflation coming down ultimately over time.”
“And then you just have AI-related investment, which is driving, you know, it's a critical source. Of investment spending.”