Going to Dinner

Deutsche Bank's George Saravelos argues that AI-driven capex and global fiscal stimulus are fueling inflation, making a bearish USD stance untenable. He highlights that the arrival of Kevin Warsh at the Fed is likely to increase market volatility.

Key Takeaways

• 1.AI is proving to be inflationary rather than deflationary, driven by a capex and demand cycle rather than labor displacement.
• 2.Substantial global fiscal stimulus is underway, notably via energy price caps in Asia and shifting tariff dynamics in the US.
• 3.The appointment of Kevin Warsh to the Fed is expected to introduce higher volatility into rates and FX distributions.

Table of Contents

• Analyst Certification
• Important Disclosures
• Additional Information
• International Production Locations

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