The Fox News Rundown Business Rundown: The Fed, Inflation And AI Bubble Fears
Dec 12, 2025
Lou Basenese, Executive Vice President of Market Strategy at Prairie Operating Company, dives into the latest Federal Reserve activity and its impact on the economy. He discusses the implications of recent interest rate cuts and future expectations for 2026. Lou also delves into rising concerns over an AI investment bubble, advising on how to identify risky investments in this sector. Plus, he shares insights on corporate profits, wages, and the significance of cash reserves for tech firms, making for an enlightening conversation on market dynamics.
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Fed Cuts But Signals Caution
- The Fed cut rates again but signaled limited further easing, balancing inflation and employment risks.
- Lou Basenese warns data-dependent policy means more cuts may follow if labor weakness persists.
Housing Pain Is About Supply
- Powell expects the housing sector to remain strained because the issue is supply, not just rates.
- Basenese says small rate cuts won't immediately ease mortgage, auto, or credit-card pain for consumers.
Raise Wages Or Reinvest Profits
- Focus on wage gains as the clearest path to improving household finances.
- Lou Basenese advises companies to raise wages or invest in CapEx to sustain long-term prosperity.