AI capex is so big that it's affecting economic statistics, boosting the economy, and beginning to approach the railroad boom
As ever, here is what's ahead:
Updates on prior pieces My most recent Rough Notes essay A few things worth reading
I previously wrote about the perils of building renovation as a Fed chair, especially given an administration bent on finding a reason to fire you "for cause." As anyone who has renovated anything larger than a dog house knows, no one thinks what you spent on renovation makes sense, not even you. Most spouses wish they could fire someone for cause over most renovations.
In that light, this WSJ explainer of the ongoing Federal Reserve renovations is useful reading as various administration officials feign dismay at someone renovating a building that hasn't been renovated in ... ever. Shocked, I am shocked to find renovations going on in here.
On Tuesday, T***p said he was surprised to learn about the costly building renovations, given his view that Powell is a boring and unintelligent person. “I think he’s a total stiff, but the one thing I didn’t see him [as] is a guy that needed a palace to live in,” he told reporters.
Say what you will about Powell's monetary policy, either that wallpaper doesn't go¹, or Powell does, apparently.
¹ Writer Oscar Wilde's final words may or may not have been: "This wallpaper and I are fighting a duel to the death. Either it goes or I do.”.
Rough Notes:
Honey, AI Capex Ate the Economy
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