Richmond Fed President Tom Barkin said the latest U.S. CPI reading came in above the level he would like to see, but he needs to assess more data before deciding what action to take at this month's policy meeting.
Citi economists, citing the September CPI data, especially a core reading "well above our forecast and consensus expectations," added a forecast for a rate hike at the Fed's December meeting.
Morgan Stanley CEO Ted Pick said the bank is already "double overweight" on AI infrastructure buildout, and he expects industry spending to hold at roughly $1 trillion a year.
Richmond Fed President: CPI Increase Higher Than Desired, More Economic Data Needed
Richmond Fed President Tom Barkin said the latest U.S. CPI reading came in above the level he would like to see, but he needs to assess more data before deciding what action to take at this month's policy meeting.
"Obviously, it was higher than I would like to see," Barkin said in an interview after speaking at an event in Richmond. Barkin noted that the Fed's inflation target is based on the Personal Consumption Expenditures (PCE) price index. "We get PPI Thursday morning, and I'll have a better sense of what PCE might look like," he said.
Citi Economists Expect a December Fed Rate Hike, Say Core CPI Far Above Expectations
Citi economists, citing the September Consumer Price Index (CPI) data, especially a core reading "well above our forecast and consensus expectations," added a forecast for a rate hike at the Fed's December meeting. "Based on prior guidance, we expect the Fed to hold steady in October but hike by 25 basis points in December," economists Veronica Clark and Andrew Hollenhorst wrote in a report on Wednesday.
Morgan Stanley CEO Is "Double Overweight" on AI Buildout, Expects Industry Annual Spending to Hold at About $1 Trillion
Morgan Stanley CEO Ted Pick said the bank has reached "double overweight" on artificial intelligence (AI) infrastructure buildout, but he also warned that the momentum of AI spending growth will begin to slow. "We've been overweight AI from the early days. Given that AI is important not just to our clients but to ourselves, I would say we are now double overweight," Pick said on a conference call with analysts on Wednesday. Pick said AI infrastructure spending currently averages about $1 trillion a year, "which is a very large amount of money." He believes spending may not keep accelerating from that level, but it is entirely possible that it sustains that scale for another decade.
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