Nvidia's $1 Trillion Revenue Announcement, the Fed's New Inflation Forecast, & Kraken's IPO

The Rich Habits Radar episode covers key financial headlines, led by the Federal Reserve's cautious stance on inflation and rates, Nvidia's massive AI chip demand forecast amid renewed China sales, and a structural shift in US retail toward wellness services. Hosts Austin Hankwitz and Robert Croak also touch on Kraken pausing its IPO and radar items spanning AI infrastructure, stablecoins, coding tools, and robotaxis.

Federal Reserve Signals Fewer Rate Cuts

The Fed held its target rate steady at 3.5%-3.75% in a 11-1 vote, as expected, but raised its core PCE inflation forecast to 2.7% for 2026 (from 2.5%) and headline PCE to 2.7%. GDP growth projections edged up to 2.4%. The dot plot showed a median of one quarter-point cut by year-end 2026, but seven of 19 members now expect zero cuts, up from six in December—a shift from earlier expectations of multiple cuts.

Jerome Powell cited slower inflation progress and uncertain Iran war impacts, including elevated oil prices. Markets reacted sharply: the Dow fell 750 points post-conference, with major indexes hitting 2026 lows. Rate-sensitive assets like REITs, growth tech, and small caps face ongoing pressure; sectors like energy, staples, utilities, and healthcare are outperforming in this environment. Hosts note a "sector rotation" underway, with energy names like VDE, XLE, EOM, and OXY up double digits since early February.