In this episode of *Through the Noise*, Cam Harvey and Robert Olinger examine the debate surrounding Federal Reserve interest rate policy and challenge the conventional narrative about rising Treasury yields.

Harvey explains why the Federal Reserve has much more influence over short-term interest rates than long-term rates—and why the market’s focus on a potential 25-basis-point move may distract from the bigger economic story.

The discussion explores how long-term interest rates affect corporate investment decisions, why inflation expectations may not explain the recent rise in yields, and what credit spreads and massive financing for AI data centers reveal about capital markets.

Harvey offers an alternative interpretation: higher real yields may reflect investor expectations for stronger real economic growth. With companies making major investments in artificial intelligence infrastructure and data centers, rising long-term rates could be signaling accelerating productivity and economic growth rather than economic weakness.

Instead of viewing higher long-term interest rates strictly as bad news, Harvey argues that markets may be pricing in robust growth opportunities as the economic impact of AI innovation begins to emerge.

Take the AI literacy test. No cheating with AI!

How many of these terms do you know: RSI, FLOPS, TTC, ASI, GAN, HAL, CAISI, CoT, FLOPs?

What about GPT? Over a billion users of ChatGPT every day and very few of them can say what GPT stands for without looking it up.

Time's up. Pencils down. Let's dig in as I explore how AI went off the rails and got caught cheating with AI.

The average investor was excluded from the explosive upside when SpaceX was a private company. That upside was reaped by “accredited” investors The average investor is largely excluded from the IPO allotment - a few crumbs were thrown. Now, the average investor is faced with investing at $170. Academic studies show that the long-term returns of IPOs in excess of reasonable benchmarks like the S&P are modest - or non-existent.