Another interest rate hike may be ahead as Fed battles inflation

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• Fed sees AI boom adding to inflation headache , but others may pay for the medicine

  The Reuters article reports that the AI investment boom, increasingly seen at the Federal Reserve as a driver of inflation, forces central bankers to cool the rest of the economy with higher rates, and the pain falls unevenly. Small businesses, credit-dependent households and a weak housing market may bear the brunt, while large AI firms such as Amazon, Apple and Anthropic are seen as largely immune to rate hikes. ADP chief economist Nela Richardson said the Fed's 2% inflation goal has been unmet for more than five years and that fewer routes to it remain open. Fed Chairman Kevin Warsh called AI investment a “shock” to prices and demand, with the industry expected to invest about $1 trillion next year, roughly 3% of GDP. The Fed meets October 27-28 and is expected to hold rates at 3.75%-4.00%, while officials debate the pace and extent of further hikes.

  ksevradio.com·19/10, 11:15▲ DXY• SPY▼ XAU/USDFedKevin Warshinflation
• 3 Words From Fed Chair Kevin Warsh Suggest the Worst Is Yet to Come for Wall Street

  The article argues that Fed Chair Kevin Warsh's repeated use of the phrase “dose of accommodation” signals that the Fed does not view monetary policy as restrictive and may keep raising rates. The FOMC raised rates by 25 basis points to 3.75%-4.00% on Sept. 16, and the article notes that September PPI later rose 6.3% on a headline basis and 5% for core PPI. The author contends that higher borrowing costs could weigh on debt-funded AI infrastructure spending and slow AI growth projections, and that valuations leave little margin for error.

  fool.com·19/10, 10:30▼ QQQ▼ SPYKevin WarshFedinflation
• Stocks rebound into key tech earnings: Three things to know in Bitcoin this week

  Bitcoin started the week near $82,000 as stock markets attempted a tentative rebound after last week's tech-led selloff that began in South Korea, where KOSPI gained about 1.8% on Monday. Analysts expect bitcoin to retest $80,000 support after a weekly close below key local support, when the Coinbase Premium Index hit -0.14, its lowest level since late June. About 15% of S&P 500 companies report third-quarter earnings this week, including SpaceX, Tesla and Meta. Markets see 85% odds that the Federal Reserve keeps rates in the 3.75%-4.00% range at its October 28 meeting, and 75% odds of one 25-basis-point hike by year-end after two further hikes were priced out. Persistent inflation remains a concern, with September CPI at 3.7% year-on-year and PPI up 1.7% month-on-month, keeping tighter policy in view.

  Cointelegraph·19/10, 10:20▲ BTC/USDT▲ QQQ▲ SPYbitcoininflationinterest rates
• Five things to watch in markets in the week ahead

  Markets start the week with AI stocks under pressure after hotter-than-expected September inflation raised expectations of higher US rates and fed worries about debt-funded AI spending. Last week the Philadelphia semiconductor index fell 11.41% and the Nasdaq Composite lost 4.48%, with CoreWeave shedding about a quarter of its value and Oracle down 9.31%. Earnings are in focus, with SpaceX and Netflix reporting on Tuesday and Meta and Tesla on Wednesday after the close. Netflix reportedly plans to cut around 6% of its workforce, roughly 1,000 roles, its biggest reduction since 2022. SpaceX has also agreed to buy spectrum licenses from Grain Management for about $8 billion, a move into the wireless market.

  Yahoo Finance·19/10, 09:41• SPY• QQQinflationinterest ratesFed
• 3 Words From Fed Chair Kevin Warsh Suggest the Worst Is Yet to Come for Wall Street

  Fed Chair Kevin Warsh repeatedly said the Fed had 'removed a dose of accommodation' at its September meeting, a signal that inflation remains a concern. September producer prices rose 6.3% on a headline basis and 5% on a core basis, above expectations, though headline inflation had eased from its 4.2% peak in May. The Fed voted 12-0 on Sept. 16 to raise rates by 25 basis points to 3.75%-4.00%, and the author argues further hikes could come in December and through 2027. Because much AI infrastructure spending is partly debt-financed, the author warns that rising borrowing costs could slow AI growth, noting the market is the second-priciest in history.

  Yahoo Finance·19/10, 08:26▼ SPY▼ QQQFedinterest ratesinflation
• Gold bar and gold ring prices on the morning of 19/10 at SJC, PNJ, DOJI, Bảo Tín Minh Châu and Bảo Tín Mạnh Hải

  Domestic gold bar and ring prices fell 500–800 thousand VND per tael across SJC, PNJ, DOJI, Bảo Tín Minh Châu and Bảo Tín Mạnh Hải in the midday update on October 19. Early that morning, gold bars at SJC, PNJ, DOJI and Bảo Tín Mạnh Hải were quoted at 140.6–143.6 million VND per tael, while Bảo Tín Minh Châu quoted 138.6–143.6 million. From October 16, gold purchases and sales of 5 million VND or more in a day must be paid by non-cash means under Decree 390/2026/NĐ-CP. Internationally, gold traded around 4,160–4,180 USD per ounce as investors watched US economic data and the Fed's rate outlook ahead of its October 27–28 meeting. The market still leans toward the Fed holding rates steady, but persistent inflation keeps expectations of a rate hike before year-end elevated.

  CafeF·18/10, 23:47goldFedinterest rates

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  Yahoo Finance·19/10, 14:04IntelJPMorgansemiconductors
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  Yahoo Finance·19/10, 13:57▲ NVDA▲ QQQ▲ SPYNVDAIntelsemiconductors
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  Yahoo Finance·19/10, 13:56Netflixearningsstreaming
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  Yahoo Finance·19/10, 13:51Cleveland-Cliffssteelearnings
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  Yahoo Finance·19/10, 13:50▲ NVDA▲ QQQ▲ SPYNVDAsemiconductorstech stocks
• AI capex may be Meta's biggest earnings test

  Meta Platforms (META) reports third-quarter earnings after the close on Wednesday, alongside a wave of Big Tech peers. The GAAP EPS estimate is $3.54, though that figure may be messy because a legal settlement will be included and analysts differ on how it will be accounted for. Options imply a 3.2% move in either direction, the smallest since the fourth-quarter report before last. Estimates for next year's capex vary widely: Wedbush near $250 billion, Evercore ISI $210 billion, Bank of America $205 billion and Dan Ives around $194 billion. Most analysts say that spending is acceptable if Meta provides a Muse roadmap and confidence it can monetize it, and the stock is up about seven and a half percent year to date.

  Yahoo Finance·19/10, 13:47• META▲ NVDAMETAearningscapital expenditure