Bloomberg Surveillance · Tuesday, August 11, 2026
Marvin Low of State Street suggests that the significant capital raises and data center build-outs for AI are contributing to inflationary pressures, requiring tighter financial conditions. He argues that this demand for capital, driven by AI investments, is a key factor that monetary policymakers should consider alongside traditional economic data.
“So it is it is ultimately interrelated. Ultimately, growth out performance this year has very much been predicated on the fact that we've got all of this investment within the GDP stack, if you will, and there is no let up in that demand at this point.”
“So you're saying that, regardless of what happens with the underlying economy or core inflation away from some of these key components, that monetary policy makers should be looking at the rapid record pace of issuance in the debt markets and frankly increasing activity in the equity markets as a sign that they are not restrictive enough that this inflationary impact from AI has legs and is going to last for a longer period of time.”
“Yeah, absolutely. I mean, I wouldn't say that we can ignore the data, but I think that we have to take the data within the context of everything that we're saying. In terms of the capital demand in this environment, you know, there's economic theories which say that, you know, interest rates are supposed to be set where the amount of capital is equal to the availability of savings, and from that perspective, the demand for capital certainly are at levels that we haven't seen in quite some time.”