AI Boom v. Fed Tightening: Signals of Risky Economic Collision Ahead

Brian McCarthy argues the Fed should avoid further rate hikes, pointing to a sharply flattening yield curve and a stronger U.S. dollar as signs of tightening financial conditions. He warns that another 75 basis points in rate hikes could trigger negative feedback loops in earnings and credit spreads, especially as AI-driven CapEx demands capital. Brian says the Fed should step back and let the AI investment cycle play out rather than risk broader economic damage.======== Schwab Network ========Empowering every investor and trader, every market day.Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribeDownload the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watchWatch on Vizio - https://www.vizio.com/en/watchfreeplus-exploreWatch on DistroTV - https://www.distro.tv/live/schwab-network/Follow us on X – https://twitter.com/schwabnetworkFollow us on Facebook – https://www.facebook.com/schwabnetworkFollow us on LinkedIn - https://www.linkedin.com/company/schwab-network/About Schwab Network - https://schwabnetwork.com/about