Taiwan Cooperative Financial Economist Sees AI-Led Growth and Persistently High Rates in Second Half

Hsu Chien-ting, chief economist at Taiwan Cooperative Financial Holding, expects high interest rates and artificial-intelligence investment to drive the global economy along parallel tracks in the second half of 2026. AI has evolved from a standalone technology theme into next-generation infrastructure. It is expected to spur computing capacity, data-center development and corporate digital transformation, becoming a major growth engine for the smart economy over the next decade.

Hsu recently said the U.S. Federal Reserve was unlikely to cut rates in 2026 and could even raise them in the fourth quarter if inflationary pressure persists, keeping funding costs elevated. Meanwhile, AI-related investment is expected to continue supporting economic activity and productivity. The report did not disclose a specific investment amount, leaving the Fed’s rate decisions and changes in corporate capital expenditure as key indicators to watch.