Cooling inflation data is strengthening the case for the Federal Reserve to remain on hold as markets head into the fourth quarter. Brian Jacobsen, Chief Economic Strategist at Annex Wealth Management, joins Remy Blaire to discuss why the latest PCE inflation reading could keep the Fed on pause until at least December and why another rate hike may ultimately prove unnecessary.
Jacobsen also looks ahead to Micron earnings and what the results could signal for semiconductors, AI and the broader technology sector heading into earnings season. With AI investment remaining a major force behind market gains, he explains why guidance from the hardware side of the industry could help shape expectations for the next leg of the tech trade.
Meanwhile, long term Treasury yields remain near multi decade highs even as shorter term rates decline. Jacobsen argues the move is being driven less by inflation and economic growth and more by rising bond supply from the federal government, hyperscalers and data center investment. Despite higher financing costs, he does not see elevated long term yields as a major obstacle to the equity bull market.