AI capex is only about 3% of GDP, but it drove about half of US growth in the first half of the year, according to StoneX Chief Market Strategist Kathryn Rooney Vera. Strip it out and growth was closer to 1.5%. She explains why the Fed was right to hold rates, why she disagrees with Fed Chair Kevin Warsh that rate hikes will slow AI financing, and why aggressive hikes into 2027 would be a mistake with consumers already under pressure. She also warns of a double whammy if AI spending slows just as the Fed tightens.
Market Domination, Market Domination Overtime and Asking for a Trend are live weekdays 3-5pm ET with Yahoo Finance Host Josh Lipton.
00:00 AI is driving half of US growth
00:32 Why the Fed was right to hold
01:03 Three events on the macro runway
01:38 Why rate hikes won’t slow AI
02:10 Why aggressive hikes would be a mistake
02:56 The double whammy to avoid
#federalreserve #interestrates #economy
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