AI Capex Versus Rate Cuts

Updated: 2025.09.09 1M ago 4 sources
Reuters reports the Federal Reserve is torn between cutting rates to support a weak housing market and holding steady because AI data-center investment is running hot. A booming, capital-hungry tech sector can keep policy tighter even as housing softens, pushing mortgages higher and supply lower. — This links tech-investment cycles to monetary policy choices that shape housing affordability for millions.

Sources

US Created 911,000 Fewer Jobs Than Previously Thought in the 12 Months Through March
msmash 2025.09.09 62% relevant
The BLS downward revision and consecutive weak monthly prints (August +22k; June revised to -13k) strengthen the 'cut rates' side of the Fed’s dilemma even as AI-driven capex runs hot, directly echoing the tension described in the idea.
A week in housing
Halina Bennet 2025.08.20 100% relevant
Reuters note that the Fed is balancing housing weakness against surging AI-sector spending on data centers in its rate deliberations.
Links for 2025-08-20
Alexander Kruel 2025.08.20 80% relevant
Cites Sam Altman predicting 'trillions' in data‑center spend and an industry trend where computer manufacturing and data‑center construction outpace other categories, directly linking AI investment booms to macro choices and capital allocation.
Links for 2025-08-05
Alexander Kruel 2025.08.05 90% relevant
The post asserts that in the past six months AI infrastructure spending contributed more to U.S. growth than consumer spending and now exceeds dot‑com‑era telecom/internet investment as a share of GDP, effectively acting as a 'private‑sector stimulus,' directly echoing the thesis that AI capex is now a macro driver shaping policy tradeoffs.
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