World · Fox 91
– This is the script of CNBC's financial news report for China's CCTV on October 30, 2026. While the US economy maintained growth in the third quarter, its heavy reliance on artificial intelligence investment is emerging as a primary risk. Data indicates that equipment spending contributed 1.16 percentage points to third quarter GDP growth, accounting for roughly one third of overall GDP expansion, marking its strongest contribution since the third quarter of 2011, excluding the post pandemic rebound.
Looking closer, information processing equipment within total equipment spending contributed 0.86 percentage points, representing over 70% of the equipment category's contribution. These outlays directly drive data center expansions and artificial intelligence compute infrastructure. MARK ZANDI Chief Economist Moody's Analytics "You're on a two track economy.
The AI economy is fine. The non AI economy, and that is already you know, in a weakened position and quite soft. So you're running a real risk here of pushing the economy, if not into recession, to a very kind of weak environment." As the commercialization of artificial intelligence progresses, the timeline for investment returns to materialize and the ability of corporations to monetize compute power remain uncertain.
Consequently, the sustainability of the artificial intelligence investment boom has become a primary focal point for markets, injecting fresh uncertainty into the US growth outlook. Concurrently, inflationary pressures are intensifying alongside economic expansion. The Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge, rose 3.6% year over year in September, marking its highest level since May.
Under these conditions, lower and middle income households are experiencing pronounced strain, forcing some low income families to draw down savings to cover basic living expenses. The latest statistical release from the US Bureau of Economic Analysis shows that the US personal saving rate, defined as personal savings as a percentage of disposable income, slipped to 3.8% in September, declining further from 4.5% in July and 4.0% in August. Meanwhile, the Federal Reserve Bank of New York's quarterly household debt report revealed that total US credit card balances reached 1.26 trillion dollars in the second quarter, hovering just below historic peaks.
Furthermore, US economic expansion appears unable to keep pace with rapid debt expansion, allowing fiscal pressures to accumulate. According to Wall Street Journal calculations, federal debt held by the public equaled 100.03% of annual GDP as of September 30th, marking the first time this ratio has reached triple digits since 1946. This compounding debt burden increasingly tests the Federal Reserve's ability to maintain monetary policy independence under fiscal strain.
TIM ADAMS President, CEO Institute of International Finance (IIF) "We're running a deficit in the United States of 6% of GDP at the top of the cycle. So, what happens when the cycle turns? It will eventually.
So, at some point it will change, and that 6% is going to go higher." EDMUND HARRISS CIO Guinness Global Investors "Deficit spending needs to be reined in. There is no political will to do that. It certainly puts a lot of pressure on the Fed, but they can really influence the short term money rates and then hope that that will feed through into longer term money.
But at this point, there are limits under what he can do."
Source: CNBC
