Jackson Hole 2025: Powell’s Debut, Long Yields, and AI Capital Demand

This signals a pivotal shift in macro drivers: the Fed's policy stance now intersects directly with corporate capital demand from AI infrastructure spenders. The tension between long-end yields, Treasury buybacks, and mega-cap debt issuance creates a crowding-out risk that could redefine how equity markets price growth. The central question is whether Warsh's debut recalibrates market expectations on inflation tolerance—and whether that tolerance accommodates or clashes with the AI-led credit cycle. Watch for any signal on how the Fed views its role in a landscape where fiscal and corporate borrowing compete more intensely for the same capital pool.