Analyst: If AI capital expenditure slows down, it may affect the Federal Reserve's interest rate hike outlook and U.S. Treasury yields

According to Jinshi, John Luke Tanner, portfolio manager and head of fixed income at Aptus Capital Advisors, stated in a report that after the Democratic Party made progress in the gubernatorial elections, the market still needs to pay attention to whether AI capital expenditures and data center construction will be affected, or if they will simply shift to states with more favorable government policies.

Tanner indicated that he believes related investments will slow down, but the extent of the slowdown may not be as significant as the market is concerned about. When discussing whether the Federal Reserve will raise interest rates further, he stated that if the main pressure on inflation comes from energy prices and AI expenditures, then the 25 basis point hike in September is likely to be the last of this rate hike cycle. He also mentioned that government gridlock typically drags down GDP growth, which could open up space for further declines across the entire yield curve.