IN THIS ISSUE

• Macro Strategy — On Clouds, Grids And No Free Lunch: Artificial Intelligence-driven digitization and rising data center demand will likely increase electricity needs but, with technology, investment, and diversification, the U.S. energy system should adapt without major economic disruption.
  
  
• Market View — The K-Shaped Economy: While high-income spending may be enough to sustain aggregate consumption, any significant pullback by wealthier consumers could have an outsized impact.
  
  
• Thought of the Week — On Display: China's Balancing Act: China's long-term growth strategy centers on maintaining global manufacturing dominance while advancing into high-end sectors like Artificial Intelligence chips and computing infrastructure.​