--- title: "Tom Lee Sees 'Big Beats' Ahead, Says Kevin Warsh-Led Fed Won't Slow AI Growth Despite Inflation: 'Good News Is Good News'" type: "News" locale: "en" url: "https://longbridge.com/en/news/303533096.md" description: "Fundstrat's Tom Lee predicts tech earnings 'big beats,' arguing the Fed under Kevin Warsh won't curb AI growth despite inflation. However, FOMC minutes reveal AI investments are driving inflation pressures. While Lee remains bullish on tech stocks, Fed officials warn that AI buildouts may outpace supply, keeping inflation elevated. Market indices like the S&P 500 and Nasdaq have seen year-to-date gains." datetime: "2026-10-29T08:51:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/303533096.md) - [en](https://longbridge.com/en/news/303533096.md) - [zh-HK](https://longbridge.com/zh-HK/news/303533096.md) generator: "portal-rs" --- # Tom Lee Sees 'Big Beats' Ahead, Says Kevin Warsh-Led Fed Won't Slow AI Growth Despite Inflation: 'Good News Is Good News' Fundstrat’s **Tom Lee** believes that the **Federal Reserve** will not attempt to curb artificial intelligence expansion, yet recent Federal Open Market Committee (FOMC) minutes indicate that AI investments are actively driving up inflation and tech stocks are positioned to deliver ‘big beats’ during earnings. ## **Lee’s Bullish Market Outlook** During a CNBC interview on Wednesday, Lee said that the Fed does not view AI as an inflation driver. Lee stated he was “happy to hear him say that he didn’t think AI growth is necessarily inflationary.” Looking ahead to upcoming tech earnings, Lee argued that the central bank’s stance paves the way for market gains. “I think you’re going to be in a position to say big beats are great because the Fed’s not going to try to slow AI growth,” Lee said. He added that investors can now evaluate tech performance under the premise that “good news is good news.” **Read Also: 'Wall Street Cares About Free Cash Flow Now': Bloomberg's Ed Ludlow on Buyouts and AI Spending** ## **Fed Records Show Inflation Pressure** Despite Lee’s assertions, the Federal Reserve’s official records present a contrasting economic reality. The FOMC minutes from Sept. 15-16, 2026, explicitly state that “surging AI-related investments were contributing to inflation pressures.” The minutes further detail that recent consumer price increases were partly driven by “an increase in technology-related consumer goods prices associated with the AI buildout.” Fed officials also expressed concern that this “AI buildout could cause aggregate demand to outpace aggregate supply over the medium term, putting upward pressure on inflation”. During his Oct. 28, press conference, Chairman **Kevin Warsh** noted that “inflation remains elevated.” Warsh highlighted that “high-tech investment is leading the acceleration” in capital expenditures, stating that “these trends bear watching.” ## **Tech Earnings Anticipation** Trivariate’s **Adam Parker** supported Lee’s market optimism during the CNBC segment, noting that “the earnings power and cash flows of these businesses are going to be pretty good.” Parker advised against being underweight on major tech stocks, adding that he expects them to grow faster than the broader market for the next several years. ## **How Has the Stock Market Performed?** The S&P 500 index has advanced 13.13% year-to-date. Similarly, the Nasdaq Composite index was up 14.23%, and the Dow Jones gained 9.18% YTD. On Wednesday, the **SPDR S&P 500 ETF Trust** (NYSE:SPY) and **Invesco QQQ Trust ETF** (NASDAQ:QQQ), which track the S&P 500 and Nasdaq-100, respectively, closed higher. SPY rose 0.34% to $772.31, while QQQ advanced 0.60% to $725.61. Meanwhile, the Dow tracker, **State Street SPDR Dow Jones Industrial Average ETF Trust** (NYSE:DIA), ended 0.27% higher at $524.68. **Read Also: Tom Lee’s Top 6 Reasons for ‘Conviction About the AI Trade’: ‘I’m Buying This AI Dip’** ***Disclaimer:*** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.* *Photo courtesy: Shutterstock* ### Related Stocks - [QQQ.US](https://longbridge.com/en/quote/QQQ.US.md) - [DIA.US](https://longbridge.com/en/quote/DIA.US.md) - [GOVT.US](https://longbridge.com/en/quote/GOVT.US.md) - [IEF.US](https://longbridge.com/en/quote/IEF.US.md) - [SHY.US](https://longbridge.com/en/quote/SHY.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) - [TLT.US](https://longbridge.com/en/quote/TLT.US.md) - [.DJI.US](https://longbridge.com/en/quote/.DJI.US.md) - [.IXIC.US](https://longbridge.com/en/quote/.IXIC.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) ## Related News & Research - [AI, tech enthusiasm sends Taiwan’s Taiex to another record close](https://longbridge.com/en/news/299855865.md) - [Tom Lee Says Cooling Inflation Could Give US Fed Room to 'Walk Back Hawkishness' — and That's 'Good For Stocks'](https://longbridge.com/en/news/300584332.md) - [Oracle Corporation $ORCL Shares Sold by Modera Wealth Management LLC](https://longbridge.com/en/news/303829187.md) - [Samsung Hosts OpenAI CEO Sam Altman for Talks on AI Strategy](https://longbridge.com/en/news/303825829.md) - [Corning Incorporated $GLW Shares Sold by Payden & Rygel](https://longbridge.com/en/news/303828250.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**