Quite the Chinese finger trap we're stuck in; if AI investment wanes, it's going to have a material impact on the US economy and impair the minimal growth the US economy was and is currently experiencing. Along with tariffs and higher energy costs for obvious reasons, its very likely the Fed must raise rates to slow inflation even if they aren't going to achieve reaching their target. Hard to tell if raising rates is going to slow AI investment though, likely this investment will continue until sentiment shifts around future AI cash flows and investment returns.
Quite the Chinese finger trap we're stuck in; if AI investment wanes, it's going to have a material impact on the US economy and impair the minimal growth the US economy was and is currently experiencing. Along with tariffs and higher energy costs for obvious reasons, its very likely the Fed must raise rates to slow inflation even if they aren't going to achieve reaching their target. Hard to tell if raising rates is going to slow AI investment though, likely this investment will continue until sentiment shifts around future AI cash flows and investment returns.
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch...