Fed's Waller: High Rates Are Cooling the Economy, AI Spending May Fuel Inflation

• —Waller: higher Treasury yields are reducing demand and helping the Fed cool inflation
• —AI spending on data centers and chips may keep prices rising for another 2-3 years
• —Traders have cut rate-hike expectations across eight major economies by nearly 200 bps since mid-September
• —Waller: pressure from the Trump administration threatens the Fed's independence