NVIDIA CorporationPersistent core inflation may force Fed rate hikes, slowing AI data center build-out and pressuring NVIDIA's demand.
Headline inflation eased to 3.4% in July, but core Personal Consumption Expenditures inflation remains stuck near 3.3%, signaling that Trumpflation is not improving. The Bureau of Labor Statistics reported that trailing 12-month inflation fell from 3.5% in June, driven by lower energy prices after U.S.-Iran peace talks. However, the Cleveland Fed's Inflation Nowcasting tool projects core PCE to hover around 3.3% in July and August, as tariffs and supply-chain adjustments continue to pressure consumer prices. This persistent core inflation may force Fed Chair Kevin Warsh and the FOMC to raise interest rates, which could slow the AI-driven data center build-out and challenge the stock market's premium valuations.
NVIDIA CorporationPersistent core inflation may force Fed rate hikes, slowing AI data center build-out and pressuring NVIDIA's demand.
Persistent core inflation may force Fed rate hikes, raising the policy rate.
Persistent core inflation may force Fed rate hikes, raising long-term yields.