Fed Decision Awaited, TikTok Deal Progresses, AI Data Center Boom | Bloomberg Businessweek Daily 9/16/2025

Federal Reserve Meeting and Monetary Policy

• 🗓️ Traders and investors are in a holding pattern awaiting the Federal Reserve's two-day meeting decision, expected tomorrow.
• 📉 Expectations are for a 25 basis point rate cut, with some analysts anticipating further cuts later in the year.
• 🏛️ Stephen Miran has been sworn in as a member of the Board of Governors, while legal challenges surrounding Lisa Cook's position on the Fed are not expected to impact this meeting.
• 🧐 There is notable dissent within the Fed, with a wider range of opinions than seen in decades, suggesting a potential shift in policy dynamics.
• 📊 The Fed's dual mandate of maximum employment and stable prices is discussed, along with a less emphasized third mandate of moderating long-term interest rates.

Legal Updates and Investigations

• ⚖️ The suspect in the killing of conservative activist Charlie Kirk, Tyler James Robinson, has been charged with murder, and prosecutors are seeking the death penalty.
• 🔍 The investigation into Tesla vehicle doors, where exterior handles reportedly failed, trapping children inside, has been expanded by U.S. auto safety regulators.
• 📰 A New York state judge dismissed first-degree murder charges against Luigi Mangione, though second-degree murder charges remain.

TikTok Deal and Tech Sector Developments

• 📱 Negotiations for TikTok's U.S. operations are progressing, with reports suggesting a new U.S. entity could be controlled by Oracle, Andreessen Horowitz, and Silver Lake.
• ⏳ The U.S. has extended the deadline for TikTok's sale to December 16th, easing some uncertainty for the company.
• 💻 Oracle shares saw an increase following news of the potential TikTok deal, highlighting its significance for the software company's key customers.

AI Infrastructure and Data Center Demand

• 🚀 Global technology companies are planning significant capital expenditures, with a substantial portion dedicated to AI data centers.
• 🏢 Equinix CEO Adaire Fox Martin highlights a strong cyclical demand for data center services, driven by both AI model training and deployment (inference).
• 🔌 The demand for data centers is fueled by the need for connectivity and low-latency transactions, crucial for AI workloads.
• 📈 Despite a recent stock dip, Equinix is focused on long-term value creation, planning to double its capacity in the next five years to meet growing demand.
• ⚠️ Concerns exist about potential exuberance and a bubble in private technology investing due to AI euphoria, though Equinix's business model is seen as somewhat protected by its focus on connectivity.