"Google" and "Microsoft" doesn't care

While the Federal Reserve recognizes a setback in its fight with inflation, one question on the horizon waves: why does the economy not delay the way the monetary policy makers expected? One of the factors that did not accept the law in this context is the increasing belief that artificial intelligence will change the industry, in addition to billions of dollars in an effort to achieve this goal. It is true that the investment boom in artificial intelligence that eventually leads to an increase in productivity and economic growth can be very useful for the United States, but this timing is the worst for the Federal Reserve with inflation that remains higher than its 2%goal. Unfortunately for monetary policymakers, companies, such as “Microsoft”, “Alphabet” and “Amazon.com”, do not seem to care about interest rates at all. The struggle for inflation overlaps the timing of the most important developments of artificial intelligence with the fierce struggle that the Federal Reserve is fighting to eliminate the pressure of price increase. It was the powerful inflation data in June 2022, which urged the Federal Reserve to increase the 75 -basis points in four consecutive meetings, which increased the fear of the recession in the market, and that businesses are careful to be careful. Invidia’s turnover dropped year-on-year in the quarter that ended in October 2022- and is one of the leading companies in the artificial intelligence industry, relying on its graphic processing units. Also read: “Inviteia” exceeds Aramco and becomes the third largest valuable business in the world next month. Openai released the ‘Chat BT’ application, which launched the mania of artificial intelligence. It took some time before the business world could catch up. However, it was clear that the bustle and hoop cycle was a new curriculum when the Invidia Profit Report in May 2023 was a guideline of quarterly income by the highest 50% higher than Wall Street, which jumped at the price of the stock by about 30% in one day. The markets have seen the best in the worlds for a long time, as growth and inflation continue to decline due to the return of the economy to normal after the procedures of the Corona and the Federal Reserve (to reduce interest), and a new revival in artificial intelligence adopted by investors, but its actual economic impact was relatively modest in terms of cash value. Increased capital expenditures The first profit reports of the quarter have shown the most important technology companies over the past week or how things have changed. ‘Microsoft’, which can be said that it is the pioneer of artificial intelligence that determines the pace here, has announced the increase in capital expenditure – the investment bowl where ‘invitation products’ are 66% annually. ‘Alphabet’, the parent company of ‘Google’, announced 91% of capital expenditure compared to the previous year. The ‘Mita Plasforms’, the parent company of ‘Facebook’, spoke of plans to ‘invest strongly’ to support artificial intelligence research and product development. Amazon expected a significant increase in total capital expenditure “on an annual basis in 2024” as it supports the use of the artificial intelligence of the Amazon Web Services. Also read: “Amazon” spending on artificial intelligence at all levels, of which the fruits are given, there are some basic skills to perform tasks shown by major technology companies regarding investment in artificial intelligence, and assume that their investors do not want their spending to endure as the interest rate was low. It was clear in Mark Zuckerberg, CEO of Mita, the executive officer to continue to focus on the operation of the rest of our business effective, “or in the fact that the number of” alphabet “employees is largely stable in the past three quarters, despite its strong rush to artificial intelligence and the major expenses. Microsoft’s share could not rise, despite the exception of the quarterly expectations of sales and profits. Inferential models for artificial intelligence can also require the construction of new data centers and investments in generating and spreading electricity. The cradle of the artificial intelligence revolution is possible in San Francisco, but it already extends to places such as the Southeast United States. The shares of “Microsoft”, “Invidia”, “Alphabet” and “Mita” form about 20% of the S&P 500 index and were behind the index’s jump with 23% since the “Invidia” profit in May last year. The stock market is a measure of the safety and direction of the US economy, as well as its impact on the wealth of millions of Americans investing in equities (ie the change level of expenses that accompany the change in the size of the wealth). The result was to improve the confidence of consumers and businesses and reduce concerns about stagnation. The road is unclear whether spending on artificial intelligence and trust is at least one of the reasons not to follow inflation and growth. The path that the Federal Reserve expects is not clear what politics can or should do about it. Does anyone really think that raising the interest rate on federal funds is 50 additional basis points that would prevent “Microsoft” or “Dead” from leveraging the opportunity of artificial intelligence? It can be said that technological investment courses are random and unpredictable, and that it is not always the thing that can control a central bank. Unfortunately, the timing of this case was for the Federal Reserve, but the right path of work is to wait instead of continuing to push the sensitive sectors of the interest rates in the economy that are already suffering.