Tag Archives | AI capex

ECONOMY: U.S 1Q2026 Report

The Q1 2026 GDP advance estimate prints at 2.0% on three non-repeatable tailwinds — a federal payroll rebound, a tariff-driven inventory surge, and an AI capex pulse accounting for up to 79% of the print on a gross basis. Strip those out and the underlying pace is closer to the high-1s. Core PCE jumped 160 basis points in a single quarter to 4.3%. The Fed cannot cut into 4% inflation and cannot hike into a slowing consumer. The policy trap is set.

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