Ahuja Says Inflation Could Constrain Fed’s Ability to Ease Policy

Persistent inflation could constrain the Federal Reserve’s ability to ease policy if technology stocks weaken, Moon Pursuit Capital founder and managing partner Utkarsh Ahuja said.

Ahuja pointed to Oct. 14 remarks by San Francisco Fed President Mary Daly, who said further rate increases might be needed but were not urgent. He said investors should not assume the Fed would provide policy support soon.

Higher financing costs and longer approval timelines could lower returns on capital-intensive artificial intelligence projects, even if demand meets expectations, Ahuja said. Companies whose projects have yet to generate cash flow and that need to raise new funds also face execution risks and uncertainty about future financing conditions.