Thread

Fed hikes rates as inflation worries push up bond yields

184 points · 250 comments · wslh

lenerdenator · 1789587535 · focus · HN ↗
Should have been this high years ago.
The country - particularly this industry, information technology - got addicted to cheap cash. Worse, people didn't want to pay any of it back in tax, so bond yields are going to go up on the debt that was issued to cover deficit spending.
Should be interesting to see how this impacts the AI hyper-scalers. They were already burning through cash like a furnace and were running out of people to borrow from, thus the IPO hopes.
1. jrflo · 1789588673 · focus · HN ↗
  To be honest though cash hasn't been cheap for a while, not really since 2021. We have been in relatively high interest rates for the entire AI boom. Going from 350-375 to 375-400 won't be a huge shock for hyperscalers. Interest rate are still lower than when many made their initial investments in 2023-2025
  1. MarkusQ · 1789590160 · focus · HN ↗
    Depends on your time frame for "relative to"; rates have been high compared to ZIRP-era, but still moderate to low when compared to historical norms.
    jrflo · 1789591608 · focus · HN ↗
    I'm referring to ZIRP, since the OP was referencing cheap cash during ZIRP

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