To Save the Economy... The Fed Might Break It

Last week, the Federal Reserve raised interest rates for the first time in three years. The vote was unanimous, twelve to zero. Just seven weeks earlier, nine officials had voted to hold rates steady. At the same time, the ten-year Treasury yield closed above five percent for the first time since 2007. Borrowing is getting more expensive just as tech companies need enormous amounts of money to build AI infrastructure. In this video, I break down why the Fed changed course, how rate hikes reach the economy, and what rising borrowing costs could mean for the AI buildout. We’ll also look at why a slowdown might affect more than tech companies—and how quickly AI investment is growing compared with the housing boom. The Fed is trying to control inflation. Could the cost be a slowdown in one of the economy’s biggest sources of growth? Like the video, subscribe, and tell me what you think in the comments.