Li Xunlei: Fed Rate Hikes May Be Less Effective as Inflation Stays Sticky

Li's argument reframes the inflation debate: if the current capex boom is concentrated in sectors that can absorb higher borrowing costs, the traditional transmission channel of rate hikes weakens. That matters for anyone positioned around Fed policy, because it implies tighter conditions may persist without delivering the intended disinflation. The open question is whether this capex concentration is a durable structural shift or a cyclical feature of the AI investment wave.