Episode summary
Bloomberg Surveillance TV: August 27th, 2026 | Bloomberg Surveillance
Bloomberg Surveillance
· · 22 min · Hosts: Tom Keene, Paul Sweeney, Lisa Mateo, Michael Barr · Guests: Aaron Kennon, Stuart Benjamin, Torsten Slok
Summary
Aaron Kennon of Clear Harbor Asset Management argued that AI and the data-center buildout are likely to become a bigger part of the Fed’s debate because they create a mix of near-term inflation pressure and longer-run productivity gains. He said the central bank is already in a holding pattern, with recent CPI and PPI showing disinflation but PCE and weaker jobs data complicating the picture, so markets may be right to expect no move in September and a possible cut in December.
He also framed the economy as split between asset owners and everyone else. He pointed to rising housing and car prices for wealthy consumers, while lower-income households face higher borrowing costs, higher credit-card stress and weaker credit access. That, he said, is feeding a political narrative around a two-speed economy and could matter for the November elections.
The discussion then turned to Meta’s $18 billion settlement and Professor Stuart Benjamin’s view that the company settled late because the public backlash had become too severe. He said the case was structured to pressure competitors like YouTube and TikTok as much as Meta itself, and that the agreement could reduce future legal exposure while improving Meta’s public image.
Finally, Torsten Slok of Apollo said Fed Chair Kevin Worsh will need to give clearer framework guidance at Jackson Hole, because higher rates are being driven by fiscal deficits, sticky inflation and hyperscaler issuance as well as the Fed. He said the market wants a clearer path from 3.5% inflation toward 2%, even if the chair avoids explicit forward guidance.
Key takeaways
- Aaron Kennon says AI could push the Fed to weigh near-term inflation against long-run productivity and job displacement.
- Kennon expects the Fed to stay on hold in September and possibly consider a move in December if inflation and labor data stay mixed.
- Kennon describes a two-speed economy in which asset owners benefit while lower-income households face higher borrowing costs and rising credit stress.
- Professor Stuart Benjamin says Meta settled late because the case had become a public-relations problem as much as a legal one.
- Torsten Slok says Kevin Worsh needs to offer framework guidance at Jackson Hole because fiscal deficits and AI-related issuance are helping keep rates higher for longer.
Notable quotes
“Expect AI and the extraordinary capital investment associated with the data center buildout to increasingly enter the Fed's discussion”
“the market may be correct if they don't do anything in September um and that they they contemplate a move in in December”
“it's the tale of of two economies”
“This settlement is about Meta's bottom line and in particular their competitive position”
“interest rates are going to stay higher for longer”
How the episode opens
Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Surveillance Podcast. I'm Jonathan Pharaoh along with Lisa Abramitz and Amarie Hordern.
Join us each day for insight from the best in markets, economics, and geopolitics. From our global headquarters in New York City, we are live on Bloomberg television weekday mornings from 6:00 to 9:00 a.m. Eastern.
Subscribe to the podcast on Apple, Spotify, or anywhere else you listen. And as always, on the Bloomberg terminal and the Bloomberg business app. Here's a view on Wall Street this morning.
Aaron Canon of Clear Harbor Asset Management writing, "Expect AI and the extraordinary capital investment associated with the data center buildout to increasingly enter the Fed's discussion. Aaron joins us now for more. Aaron, welcome to the program.
Let's build on that. Is that a story the Fed strips out or has to bake in and begin to react to?
Well, we'll have to see, Jonathan. I mean, we're going to hear from Fed Chair Worsh on Friday and maybe we'll we'll we'll be able to read some tea leaves on how they're thinking about the September meeting, but certainly AI is a big part of their their story in their contemplation because in the short hand in the short term, we're looking at inflationary pressures that are impacting ultimately consumers or at least concerning consumers and there's huge political consequence to that. In the long term, there's a hope that AI will generate significant productivity gains, but it could also disintermediate employment.
So, there's there's a challenge there for the Fed as they speak both to the market as well as to the the American people um at both the FOMC level as well as uh out in Jackson Hall.
Aaron, look at the runway for demand right now.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- economy
- markets
- finance
- economics
- investment
Companies and tickers mentioned
- APO
- Clear Harbor Asset Management
- Apollo Management
Watch the episode
Watch “Bloomberg Surveillance TV: August 27th, 2026 | Bloomberg Surveillance” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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