Who needs rate cuts? Even the Fed’s new chair admits companies are easily raising capital on financial markets amid epic stock and debt binge

Markets are losing hope that the Federal Reserve will lower rates anytime soon and are bracing for potential increases, but the deluge of capital being raised by companies signals financial conditions are already somewhat easy. Before Space X’s historic IPO, Goldman Sachs estimated IPOs in 2026 will generate a total of $225 billion in proceeds—up from a prior view for $160 billion and 2025’s tally of just $44 billion. In addition to IPOs, companies are using secondary stock offerings to build up their war chests. Google parent Alphabet netted nearly $85 billion proceeds this month, in what was the biggest equity capital markets transaction ever, at the time. Meanwhile, corporate bond issuance in the year through May totaled $1.23 trillion, up 21% from a year ago as hyperscalers take on debt to fuel massive AI spending, according to the Securities Industry and Financial Markets Association. More debt is on the way. In fact, after SpaceX sold $85.7 billion in stock from its IPO this month, it’s reportedly preparing to issue $20 billion in bonds. AI chip leader Nvidia is also looking to raise more than $20 billion in its first debt sale since the AI boom began, sources told CNBC. Convertible debt is also popular, and issuance from U.S.-listed firms in the year to date is up 43% from the same period in 2025 to $54 billion. To be sure, financial conditions aren’t as loose elsewhere, namely in the housing market. Since the Fed hiked rates aggressively to fight post-COVID inflation, home sales and construction have stagnated. Last year’s rate cuts did little to help, especially after President Donald Trump’s war on Iran sent oil prices and bond yields soaring earlier this year. But in his first press briefing as Fed chair on Wednesday, Kevin Warsh nodded to the gusher of capital coming out of Wall Street, even as he said that monetary policy overall is “somewhat restrictive.” “I would have a hard time managing to say tho