JPMorgan report: Fed rate hikes and AI shortages to drive next investment cycle

JPMorgan predicts a 25 basis point rate hike by the Federal Reserve in December, pushing the target range to 3.75%-4.00%. The report highlights that persistent inflation and the erosion of Fed credibility necessitate action. Key themes for the upcoming cycle include the AI computing shortage, increased investment in power infrastructure, and regional market localization. JPMorgan also notes that the global economy is entering a new investment cycle, though path volatility remains high due to policy uncertainty.