Is AI Spending Translating Into Profits for Companies?

Is AI Spending Translating Into Profits for Companies? Yes, but not everywhere, and certainly not equally. There is a tendency with every major technological cycle to gravitate toward one of two extremes. Either the technology is going to change everything immediately, or the enormous amount of spending proves we are in a bubble. I don’t […]
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Data Center Deficit: The Political Crisis Quietly Threatening AI

Data Center Deficit: The Political Crisis Quietly Threatening AI While investors fret over a potential financial bubble driven by soaring tech valuations and massive infrastructure spending, the true vulnerability of the artificial intelligence boom lies in the physical world. The critical bottleneck is not a lack of commercial demand or technological utility, but rather the […]
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Inflation on the Front Burner

Inflation on the Front Burner Fed Chair Warsh’s speech at Jackson Hole on Friday had a clear message: the Fed is not declaring victory on inflation, does not view the economy as broadly weak, and will not pre-announce its next move. If upcoming data do not demonstrate faster, durable progress toward 2% inflation, Warsh’s framework […]
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Crowding Out: Competition for Capital

Crowding Out: Competition for Capital This week, the Treasury surprised markets when it said it would at least double the maximum size of certain buyback operations for 10- to 30-year securities, raising the cap from $2 billion to “at least” $4 billion per operation. The initial market reaction was straightforward: prices of long-dated Treasuries rose […]
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The Yen is Weak. Should We Care?

The Yen is Weak. Should We Care? In late July, Japan and the United States reportedly launched a coordinated currency intervention to support the Japanese yen after it fell to a near 40-year low. The yen weakened sharply in mid-to-late July, reaching almost ¥164 per U.S. dollar after beginning the year near ¥156. That decline […]
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Why U.S. Gas Prices Rise Despite “Energy Independence”

Why U.S. Gas Prices Rise Despite “Energy Independence” Average U.S. gasoline prices are back above $4 per gallon, and few people are happy about it—except perhaps the oil industry. The reality is that U.S. energy independence does not guarantee low domestic fuel prices. As the world’s largest oil producer, the United States can protect itself […]
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Back to the Future: The Quiet Revolution at the Fed

Back to the Future: The Quiet Revolution at the Fed Fed Chair Kevin Warsh advocates ending the decades of market-saving interventions and breaking the dependency on central bank rescues. He seeks to restore true price discovery by prioritizing long-term stability over short-term market noise, ultimately favoring reduced leverage and organic market cycles. The Warsh era […]
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