AI Spending Is Booming. Will the Fed Raise Rates?
AI-related capital spending continues to support the U.S. economy, and the latest durable goods report reveals surprising strength beneath the headline numbers. But could stronger economic growth give the Federal Reserve another reason to raise interest rates?
In today’s Markets with Megan, Verdence Capital Advisors CIO Megan Horneman reviews August’s durable goods orders, the surge in business investment, and what the latest economic data could mean for third-quarter GDP, inflation and the Fed’s October meeting.
– Why aircraft orders weighed on the headline durable goods report.
– How underlying orders rose more than 1% in August and 14.8% year over year.
– The role of AI-related investment in machinery, computers, metals and electrical equipment.
– Why the Atlanta Fed’s GDPNow estimate is tracking third-quarter growth above 5%.
– What strong economic data could mean for interest rates, inflation and financial markets.
Can the AI investment boom continue supporting economic growth without reigniting inflation?
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