Episode

Markets navigate AI spending boom while inflation holds below target

Podcast
The Weekly Fix
Published
Feb 18, 2026
Duration seconds
237
Processing state
not_requested
Canonical source
https://the-weekly-fix.captivate.fm
Audio
https://episodes.captivate.fm/episode/eea9ec17-f958-4465-95d8-ae58e26cb549.mp3
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/v1/public/podcasts/the-weekly-fix-6462690/episodes/markets-navigate-ai-spending-boom-while-inflation-holds-below-target
Markdown
/podcast/the-weekly-fix-6462690/markets-navigate-ai-spending-boom-while-inflation-holds-below-target.md

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Summary

RBC’s BlueBay Fixed Income team discusses how US markets have shown resilience with contained inflation, though heavy tech sector debt issuance from AI investment creates credit market pressure while raising questions about potential future inflationary risks. January CPI rose just 0.2% monthly and 2.4% annually, below consensus, keeping two 2026 rate cuts priced in. Technology sector's elevated 2026 capex projections are generating significant new supply in investment grade credit markets, creating technical spread pressure while high yield remains well positioned. The AI investment cycle presents dual risks—whether monetization will justify near-term spending and whether competition for resources could generate inflationary pressure before productivity gains materialize.