AI Spending Boom Could Keep Interest Rates Higher for Longer, Apollo Economist Says

Bitget2026/10/17 11:55

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AI spending could keep interest rates higher for longer by weakening monetary tightening’s impact, Apollo chief economist Torsten Sløk warned Thursday.
Many AI investors expect returns above 10%, compared with the approximately 4% Fed funds rate, supporting continued infrastructure spending.
The 10-year US Treasury note yield rose approximately 125 basis points over the past year, yet analysts raised 2027 capital expenditure expectations.
Persistent fiscal deficits and heavy Treasury issuance could raise the term premium, keeping long-term borrowing costs elevated despite potential oil-price relief.
Disappointing AI returns could trigger sharp reassessments of valuations and capital expenditure plans.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Tekedia Capital LLC published the original content used to generate this news brief on October 17, 2026, and is solely responsible for the information contained therein.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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AI Spending Boom Could Keep Interest Rates Higher for Longer, Apollo Economist Says

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