Rates will keep going up for one major reason related to the AI boom, a top economist says

Apollo Global Management chief economist Torsten Sløk said interest rates are likely to keep rising due to the AI spending boom. He argued that the AI buildout is not sensitive to interest rates, and that upward pressure on rates will persist until either the Fed raises rates above expected AI returns or expected AI returns fall below the Fed funds rate. Sløk noted that long-term borrowing costs have increased over the past year, with 10-year Treasury yields up.

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