Breitbart Business Digest: Manufacturing Roars While Jerome Powell Cleans Out His Desk

Published: Friday, May 15, 2026 at 11:14 pm

American Manufacturing Surges Amidst Economic Shifts

This week's economic news highlights a significant boom in American manufacturing, particularly in the technology sector. Data indicates a record high in core capital goods orders and robust industrial production, driven by increased demand for technology related to artificial intelligence. This expansion differs from previous tech booms, such as the tablet era, as it focuses on building physical infrastructure within the United States, including servers, chips, and communications equipment.

Several factors contribute to this shift. Tariffs, a renewed focus on economic nationalism, concerns about supply chain security, and AI safety are making domestic production more attractive. Over the past six months, capacity in computers, communications equipment, and semiconductors has grown at a rapid pace. Total manufacturing capacity has also expanded, marking the largest growth since 2012.

Simultaneously, inflation remains a concern. While the recent inflation reports were higher than expected, the article suggests that the greater economic risk from high energy prices is deflationary and contractionary.

In other news, the Federal Reserve is experiencing a transition. Jerome Powell's term as chair has ended, and Kevin Warsh is set to take over. However, Powell has been appointed as chair pro tempore until Warsh is sworn in. This decision has raised questions about the board's authority to appoint its own temporary head, particularly without explicit presidential involvement.

BNN's Perspective: The surge in American manufacturing, coupled with the ongoing transition at the Federal Reserve, paints a complex picture of the current economic landscape. While the manufacturing boom is encouraging, the inflationary pressures and the unusual circumstances surrounding the Fed's leadership transition warrant careful monitoring. The focus on domestic production and infrastructure development is a positive sign for long-term economic growth, but the potential for economic contraction due to high energy prices remains a concern.

Keywords: Manufacturing Boom, Artificial Intelligence, Industrial Production, Inflation, Federal Reserve, Jerome Powell, Kevin Warsh, Economic Nationalism, Supply Chain, Tariffs, Economic Growth, Technology, Semiconductors, Infrastructure.

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