JPMorgan: Fed to hike rates in December; AI shortage fuels investment cycle

A JPMorgan research report from September 1, 2026, projects a 25 basis point Fed rate hike in December, bringing the federal funds rate to 3.75%-4.00%. The report forecasts 2.0% US GDP growth and 3.5% core PCE inflation for 2026. It highlights that the AI computing shortage is driving a multi-year supercycle, with increased capital expenditure from hyperscalers. Other focus areas include industrial automation, defense spending, and regional market localization.