Yes, because the tariffs already indirectly bind the hands of the Fed. Besides a bit of QT (which doesnt really help because of massive deficit), they can neither raise, nor lower rates without causing a big fire as long as the tariffs are in place, but the situation is getting worse by the day, and reality will soon hit like an empty truck.

And honestly, because of this massive shift in distrust in the US market, even backtracking all tariffs to zero would likely not work anymore.

And the most ironic thing is that due to inflation, even when everything goes back to the way it was before trump (it won’t), the US will end up with a bigger trade deficit than before, because the loss of value of the dollar.

Usually the institution that prevents a recession from becoming a depression is an independent Fed. If Trump and his cronies get their hands on that, there is a high chance it’s going to be one.

For AI processing, I don’t think it would make much difference if it lasted longer. I could be wrong, but afaik, running the actual transformer for AI is done in VRAM, and staging and preprocessing is done in RAM. Anything else wouldn’t really make sense speed and bandwidth wise.

They are buying more and more Canadian crude as well.