Good morning, investors. It’s possible that peace talks bring the Iran conflict to a close or at least a pause in the near-term, but markets continue to price in longer-term uncertainty and a potential inflation rebound.

Those are two headaches for the Federal Reserve.

But the more troubling, long-term headwind likely sits on the other side of the Fed’s dual mandate.

Technologists speak of AI driving creative destruction and new opportunities, but a growing chorus of market veterans are pointing to the downside.

The concern is no longer abstract. The faster that leading AI models advance, the more jobs they seem to boot from the labor market.

On Tuesday, JPMorgan CEO Jamie Dimon said that the pace of AI-fueled displacement could create unemployment faster than society can absorb it.

The government, he said, should build retraining incentives for businesses to support workers getting left behind.

Jeff Park, CIO of ProCap Financial, shared a similar view on Full Signal this week.

“AI is not only capital intensive,” he told me. “It is labor destructive.”

While the high performers at top of the income distribution will be better positioned to adapt, Park remains concerned about workers at the bottom of the skills ladder.

AI, he argued, will redefine what it means to be employable.

“The bottom decile is where the foundational buildout of any economy is,” Park said. “And what AI is going to do is raise that bar even higher.”

What makes this moment different from past technological disruptions is speed.

Email, for instance, did not eliminate postal workers overnight. Neither did cars with horse carriages.

Yet both Park and Dimon see AI barreling toward the labor market with a unique intensity.

“It’s coming,” Dimon said. “It’s going to come quickly.”

Meanwhile, “Dr. Doom” economist Nouriel Roubini echoed the same concern.

AI will cause “massive shedding” of jobs, and the disruption won’t stop at routine work. He told Yahoo Finance that cognitive jobs, creative jobs, knowledge workers will all eventually fall into the crosshairs of AI.

To be sure, new technology will always beget new jobs and sectors. The productivity gains are already showing up in certain pockets of the economy.

But it’s worth paying attention when smart commentators from different companies start ending up on the same page.

Staying on top of markets that hit a new all-time high seemingly every week, a never-ending news cycle and volatility that’s frankly...volatile is a lot of work.

No matter what the market is doing, tastytrade has the tools you need to stay up to date and trade your way through it.

With tastytrade you get advanced charts, in-feed news and smart tools to help you adapt your strategy when the market shifts. You can manage your entire portfolio (stocks, options, futures, forex, and crypto) all on one platform with low commissions. 

See why serious traders choose tastytrade. 

📉 Circle stock tumbled 22% after the updated Clarity Act. The proposed legislation could ban stablecoin issuers from paying yield to customers just for holding the asset. (CNBC)

💰 Iran offered a “present” to the US in negotiations. That’s according to President Trump, who wouldn’t detail the gift “worth a tremendous amount of money,” though he noted that it was a good faith signal ahead of a potential deal. (Bloomberg)

📊 US business activity fell to an 11-month low in March. Private-sector employment declined, while the Flash US Composite PMI Output Index also dipped to 51.4, pointing to broad sluggishness. (Reuters)

I sat down with Jeff Park, CIO of ProCap Financial, to unpack the three biggest macro forces of our generation and what they means for investors, and the role bitcoin plays in the modern portfolio.

Tune in on YouTube, Spotify, or Apple Podcasts.

🗓March 25, 2020: The US Senate passed the $2.2 trillion CARES Act 96–0, the largest federal economic intervention in American history and the catalyst for stimulus checks.

📩 Want to get in front of 200,000+ investors who get this newsletter and the 350,000 professionals who can access it on Bloomberg Terminals? Reply to this email and tell us why we should work together.