Tom Lee Says Fed Rate Hikes Won't Fix AI-Driven Inflation

Tom Lee argued AI is creating inflationary bottlenecks the Fed cannot solve through higher rates, according to Fundstrat. He said AI spending is pressuring memory and energy, creating inflation in key infrastructure inputs, and that higher interest rates are unlikely to meaningfully slow AI investment.
Lee also noted that strong economic data is making markets nervous, since stronger growth keeps Fed concerns about inflation elevated.