The Federal Reserve focuses on structural changes in inflation and the risks of an AI investment bubble

The Federal Reserve Beige Book indicates a "dual-sided economy" phenomenon in the United States: In May, private sector employment increased by 122,000 jobs, capital expenditure was driven by AI data center construction, Alphabet's financing scale rose to $84.75 billion, and SpaceX valuation is nearing $1.8 trillion; however, consumer confidence has dropped to a historic low, real wages have declined, and some companies have postponed investment plans. Current core inflation stands at 3.8%, above the 2% target, mainly fueled by energy, tariffs, and AI capital expenditure. New York Federal Reserve President Williams believes there is no need to raise rates for now, while Dallas Federal Reserve President Logan stated that further rate hikes may be needed this year. Bridgewater founder Dalio warns that AI investments may exhibit bubble characteristics, and the market should pay attention to the alignment between valuations and profitability. The world's first ETF, VOO, to exceed $1 trillion in scale has been born, with funds concentrated among a handful of leading companies.