AI investment boom coupled with insufficient savings! Yardeni says neutral rate has risen to 4.25%-4.50%, and the Fed may need to raise rates by another 50 basis points.

Zhito Finance APP notes that Yardeni Research said on Monday that the AI construction boom, combined with high energy prices, tariffs, and deglobalization, is pushing up commodity prices; while stronger capital demand and a smaller supply of national savings are driving the neutral real interest rate higher.