JPMorgan: High interest rates will not hinder the U.S. economy driven by the AI capital expenditure cycle.

JPMorgan Chief Portfolio Manager Sylvia Sheng said that higher policy rates will not hinder U.S. economic growth, as the economy is being strongly driven by an AI capital expenditure cycle that is largely insensitive to interest rates. She added that financial conditions remain strongly supportive, credit spreads remain low, and corporate fundamentals remain solid.