Morning Brew Daily The Fed Slashes Rates Again & Big Tech’s Endless AI Spending
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Oct 30, 2025 Big tech companies are ramping up AI investments, with Microsoft doubling its data center footprint and Alphabet hitting $100 billion in revenue. The Fed has cut rates for a second time this year while halting balance sheet shrinkage, causing market uncertainty. A controversial Netflix film challenges the Pentagon over missile defense portrayal. On a lighter note, trends in the fried chicken wars highlight a preference for boneless options, while AI's rise is impacting the animal acting industry. Lastly, many Americans feel guilty for not taking vacation time.
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Watch Powell's Tone, Not Just The Vote
- Expect cautious Fed moves when labor data is incomplete due to the government shutdown.
- Monitor Fed language closely because Powell's tone can rapidly change rate-cut expectations.
Fed's Mixed Signals Create Market Fog
- The Fed signaled dovish actions then Powell adopted a hawkish tone, creating market confusion.
- That mixed messaging reduced confidence in a December cut and raised uncertainty.
Pentagon Pushes Back On Film's Defense Portrayal
- A House of Dynamite dramatizes missile defense failures, prompting the Pentagon's pushback.
- The MDA's 100% success claim in tests is technically narrow and drew skepticism from experts.