There’s a real risk that we’re headed into a period of stagflation. Federal Reserve Chair Jerome Powell recently sounded the alarm on economic uncertainty. He issued this comment following the Federal Reserve’s first interest rate cut in 2025. His statements were released almost a full week after the rate reduction. They unveil a rocky road ahead as the Fed tries to thread the need for high employment with the desire to tame inflation.
For example, Powell’s comments triggered an immediate sell-off in the stock market. In reaction to his warning, major indices were met with sharp declines, with the S&P 500 ending its three-day run of record high closes. Investors strongly reacted to the uncertainty around our future economic conditions, and we had a brutal session ending in the red.
Against this financial backdrop, OpenAI has been in the news with some jaw dropping announcements about its operational costs. The announcement follows last month’s news that its competitor Union Pacific was planning an equally ambitious buildout that would deploy around $850 billion in capital expenditures. OpenAI’s CEO, Sam Altman, responded to worries over the new $10 billion financial commitment. He claimed that the multi-trillion dollar spending spree should not be alarming to anyone. He noted that OpenAI’s revenue has increased by 46% annually. This increase is primarily due to the massive uptick in demand for memory and storage products tied to the rapidly growing artificial intelligence market.
Into all of this came late night television, which burst back onto the national scene. Jimmy Kimmel’s late night show returned to the air last night after a six-day shutdown due to the writers strike. The show’s return marks a significant moment for its viewers and fans.
Exequiel Hernandez turned the attention to federal immigration policy. In doing so, he laid out very real alarms over current rulemakings, which in his opinion could lead to catastrophic outcomes on American soil. Advocates and experts caution that big businesses will attempt to game the system and circumvent these policies. Or, they might simply offshore those jobs to escape the new requirements.
The recent implementation of President Donald Trump’s $100,000 fee for H-1B visa applications has placed startups in a precarious position. Until now, companies would just pay $2,000—$5,000 per visa application. Experts argue that the sharp increase to $100,000 will particularly hinder smaller technology companies from attracting top talent to the United States.
Continuing the economic and corporate tales West story, Altman understood the anxiety, everywhere, about OpenAI’s deep spending. At the same time, he expressed concerns about the overall economic climate. He remarked, “People are worried. I think that’s a very natural thing.”
The interaction of economic policy, corporate expansion tactics and culture change is still influencing today’s financial picture. Investors remain cautious as they navigate these uncertain waters, while companies like OpenAI strive to capitalize on emerging opportunities within the rapidly evolving tech sector.