Fed's Kashkari does not see modest Fed hikes slowing hyperscaler investment significantly
TLT•Minneapolis Fed President Neel Kashkari said up to three 25-basis-point rate hikes were unlikely to slow hyperscaler investment much. He also said he did not see AI investment creating systemic risk to the financial system.
1. Rate hikes and investment
Kashkari said modest rate hikes were not likely to slow technology-sector investment significantly, asking what up to three 25-basis-point hikes would do to slow hyperscalers and answering, “Not much.” He said he was not in a position to judge whether the investment was good or bad, and did not see AI investment creating systemic risk to the financial system.
