Fed rate hike odds threaten AI-driven bull market.
Context
What happened: The CME Group FedWatch Tool shows a 34.7% probability that the FOMC raises the federal funds target rate by 100 to 175 basis points by the September 2027 meeting, after the Fed began a rate-hiking cycle under Chair Kevin Warsh.
Key numbers: 34.7% probability of at least four quarter-point hikes by September 2027.
Why it matters: The content states AI infrastructure purchases are partly debt-financed, so higher borrowing costs could slow the data center build-out or hurt growth projections, and that premium valuations leave little margin for error.
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