Navigating AI Innovation and Economic Crosscurrents

This month, our insights focus on two pivotal themes shaping the current financial landscape: the rapid advancements in artificial intelligence, particularly Google’s new Veo 3 video generation model, and the Federal Reserve’s growing concerns about stagflation. We’ll explore how these developments impact the market and offer strategic considerations for your portfolio, aligning with LA Wealth Advisors’ commitment to providing comprehensive, tailored services and ensuring “no blind investing” for our clients.

Key Topics for This Month

Google AI with Veo 3

At the Google I/O 2025 event on May 20, Google announced the release of Veo 3, a new AI video generation model that makes 8-second videos. Within hours of its release, AI artists and filmmakers were showing off shockingly realistic videos. You may have even seen some of these videos in your social media feeds and not realized they were artificially generated.

To be blunt: We’ve never seen anything like Veo 3 before. It’s impressive. It’s scary. And it’s only going to get better.

Image Source: iStock

Fed Sighting Stagflation Developing

In its latest assessment, the Fed highlighted the rising potential for stagflation — a scenario where inflation remains high despite stagnant economic growth.

Fed Chair Jerome Powell acknowledged that while the economy continues to expand at a moderate pace and labor markets remain “solid,” inflation pressures have proven more persistent than anticipated.

Image Source: iStock

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