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.

Morning Trade Live

25 Jun 2026

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