Energy Driven Inflation Complicates Fed Rate Call

Watch on YouTube ↗  |  September 12, 2026 at 15:10  |  6:24  |  Bloomberg Markets
Speakers
Amanda Agati — Chief Investment Officer, PNC Asset Management Group

Summary

PNC Chief Investment Officer Amanda Agati discusses the Fed's difficult rate decision amid energy-driven inflation and a longer-than-expected Middle East conflict. She warns that further tightening could risk a policy error, says the bond market is pushing back, and expects a short-term equity stall. She also notes strong Q2 earnings have eased AI anxiety and still sees the AI cycle in early-to-mid innings with runway left.

  • Fed faces a difficult decision after energy-driven inflation data.
  • Agati is not convinced rate hikes are needed and warns of policy error risk.
  • She says the bond market is casting an early skeptical vote.
  • The Middle East conflict is lasting longer than markets expected, keeping energy risk elevated.
  • Strong Q2 earnings, including 51% S&P 500 earnings growth, limit bearishness.
  • Equities may stall in the short term on rates and geopolitics.
  • AI anxiety has faded; Agati still sees the AI cycle in early-to-mid innings.
Ideas
Amanda Agati Chief Investment Officer, PNC Asset Management Group 2:15
Longer war keeps energy supply risk elevated.
Agati says the Middle East conflict is lasting much longer than the market expected, keeping focus on how geopolitics affects energy policy and supply. She notes that without the conflict, the backdrop for oil, gas, energy, and commodity prices would be very different, so energy-driven inflation and supply risk remain important to monitor.
WTI UNG MED
Amanda Agati Chief Investment Officer, PNC Asset Management Group 4:22
Near-term equities stall; strong earnings support.
Agati expects the equity market may stall in the short run as the geopolitical conflict lasts longer than anticipated and the bond market pushes back on the macro backdrop. However, she says strong economic growth and broad-based Q2 earnings growth, including 51% year-over-year S&P 500 earnings growth, mean investors should not get overly bearish.
SPY MED
Amanda Agati Chief Investment Officer, PNC Asset Management Group 6:19
AI cycle still has long runway.
Agati says strong Q2 earnings and broad-based fundamentals have pushed AI anxiety into the background. She believes the AI cycle is still in early-to-mid innings with a lot of runway left, even though investors will eventually focus on the peak in CapEx spending and return on invested capital.
Artificial Intelligence HIGH
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This Bloomberg Markets video, published September 12, 2026, features Amanda Agati discussing WTI, UNG, SPY, Artificial Intelligence. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Amanda Agati  · Tickers: WTI, UNG, SPY, Artificial Intelligence