Wall Street Week | Warsh’s Fed, Vibe Coding, Geothermal Energy, Vegas Bets Big

Summary

This episode of Wall Street Week covers the Federal Reserve's policy outlook under incoming Chair Kevin Warsh, the rise of 'vibe coding' making software development accessible to all, the potential of enhanced geothermal systems to provide clean baseload power for AI data centers, and Las Vegas's reinvention from a gambling hub to an entertainment and premium-experience destination. The market implications include ongoing inflation concerns, productivity gains from AI coding tools, growing demand for reliable renewable energy, and mixed signals in consumer discretionary spending.

• Glenn Hubbard discusses Fed's inflation-over-stagflation bias and the challenges facing new Chair Kevin Warsh.
• Vibe coding via generative AI is democratizing software creation, boosting productivity by 30-50%, but reducing hiring of junior engineers.
• Enhanced geothermal systems (EGS) offer a clean, baseload power source for AI data centers, with partnerships like Ormat and Sage aiming for commercial scale by 2027.
• Water availability and grid interconnection are key risks for geothermal investors, particularly in new geographies.
• Las Vegas visitor numbers dropped 7% in 2025, but premium entertainment and day clubs (e.g., Tao Group's Omnia) continue to see record revenue.
• Lower-income households are cutting back on Vegas spending due to higher gas prices and inflation, though the city's rapid permitting and reinvention capabilities support long-term resilience.
• Hedge funds and private equity now dominate casino ownership, shifting focus from gambling to an all-encompassing entertainment model.
• The video highlights the cross-sector impact of AI on energy demand, labor markets, and regional economies.