AI Stocks Finally Help the Fed Fight Inflation, by Falling

A pullback in artificial-intelligence equities may relieve some upward pressure on U.S. borrowing costs, potentially helping the Federal Reserve's campaign against inflation, BMO Capital Markets senior economist Jennifer Lee said on Bloomberg This Weekend on November 1. Lee traced higher rates partly to corporate borrowing by data-center builders; she also said that construction absorbed land, skilled labor and materials from other industries, contributing to stickier inflation. The Nasdaq-100 was in its third correction of 2026, and the S&P 500 dropped 1.8% on Friday. She said less data-center building could lower inflation; the Fed had lifted rates by a quarter-point on September 16 and kept its target at 3.75%-4% on October 28.