AI is burning money so hard that demand can’t quite keep up—will the “triple-high scenario” really arrive, driven by sticky inflation, the Middle East’s geopolitical tensions, and Japan’s shifting uncertainties?

U.S. April core PCE rises to 3.3%, hitting a recent high, prompting the Federal Reserve to consider further tightening. Goldman Sachs warns that inflation is the biggest risk, and the market is pricing in rate hikes again for the first time this year. AI investments weaken the demand-suppressing effect of high interest rates, leading to a divergence between PCE and CPI, with inflation becoming more sticky. Middle Eastern energy tensions and Japan's outlook increase uncertainty, and the world may continue to experience high inflation, high interest rates, and high volatility.