Fed Governors Divide Over Future Interest Rate Reductions, With Powell's View Not Prevailing
In a significant move for the tech industry, Nvidia has announced a $5 billion investment in Intel for the co-development of chips for data centers and personal computers. This investment follows a series of investments in Intel, totaling roughly $16 billion, including initial investments from the US government and SoftBank.
The deal between Nvidia and Intel does not necessarily mean that Nvidia will become an Intel Foundry customer immediately. The investment is aimed at collaborative research and development, not a direct manufacturing partnership.
This investment comes after a series of positive developments for Intel. One analyst described Intel's recent weeks as a "golden few" after years of struggle for investors. The investment from Nvidia follows the Trump administration's support for Intel. However, it's important to note that talks between Nvidia and Intel began before Trump's August attack on Intel CEO Lip-Bu Tan.
Meanwhile, the Federal Reserve cut interest rates as expected on Wednesday. Despite this, one Fed official has expressed a desire to raise rates from the current level, signaling deep concerns about an economic slowdown. Heather Long, an economist from Navy Federal, wrote that the "dot plot" showing where Fed officials think rates should be is "wild." The plot indicates that a third of Fed officials want to hold steady, half of them want two cuts of 0.25 percentage points, two want one such cut, and one wants the equivalent of five.
The economic outlook is uncertain, with Fed officials' own forecasts showing a near-complete breakdown of the consensus. Rohan Goswami, whose role in the context of the article is unclear, has not commented on these developments.
Liz Hoffman, another unspecified figure in the article, has written about this topic, but her exact contributions are not detailed here.
This news marks a new chapter in the competition between tech giants, as Nvidia invests in its rival Intel. The implications of this partnership for the tech industry and the global economy will be closely watched in the coming months.
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