{"id":74588,"date":"2026-11-12T13:08:22","date_gmt":"2026-11-12T17:08:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-ceo-resigns-amid-spy-scandal-fed-warns-of-ai-driven-inflation\/74588\/"},"modified":"2026-11-12T13:08:22","modified_gmt":"2026-11-12T17:08:22","slug":"nvidia-ceo-resigns-amid-spy-scandal-fed-warns-of-ai-driven-inflation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-ceo-resigns-amid-spy-scandal-fed-warns-of-ai-driven-inflation\/74588\/","title":{"rendered":"Nvidia CEO Resigns Amid Spy Scandal; Fed Warns of AI-Driven Inflation"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) CEO Jensen Huang has resigned<\/strong> following revelations of an extramarital affair with an alleged Chinese intelligence asset, sparking multiple <strong>DOJ and Congressional investigations<\/strong> into national security risks.<\/li>\n<li><strong>Chicago Fed President Austan Goolsbee<\/strong> warned that the massive <strong>AI data center buildout<\/strong> is causing &quot;old-fashioned overheating,&quot; contributing to persistent service-sector inflation that may require more aggressive rate hikes.<\/li>\n<li><strong>The Trump Administration is set to extend a historic Jones Act waiver<\/strong> to mitigate energy price spikes caused by the ongoing <strong>Iran conflict<\/strong>, allowing foreign-flagged vessels to move fuel between U.S. ports.<\/li>\n<li><strong>The IMF projects U.S. inflation will not return to the 2% target until mid-2028<\/strong>, citing energy shocks and the AI investment boom as primary drivers of the delay.<\/li>\n<li><strong>A high-stakes trilateral summit<\/strong> between Presidents Trump, Putin, and Xi is being coordinated for the <strong>APEC summit in China<\/strong> later this month to discuss a new European security architecture and the Ukraine conflict.<\/li>\n<\/ul>\n<h2>Nvidia Leadership Crisis and National Security Probes<\/h2>\n<p><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) co-founder <strong>Jensen Huang resigned<\/strong> Thursday morning after admitting to an affair with Alice Huang, a former executive at Singapore-based Megaspeed who is suspected of being a <strong>Chinese intelligence operative<\/strong>. The company has named CFO <strong>Colette Kress<\/strong> as interim CEO while the board, led by newly appointed chairman <strong>Harvey C. Jones<\/strong>, begins a search for a permanent successor. Shares of <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) fell as much as <strong>8%<\/strong> in early trading as investors reacted to the loss of the visionary leader.<\/p>\n<p>The resignation has triggered a firestorm in Washington, with the <strong>U.S. Senate Finance and House Tax Committees<\/strong> launching a joint investigation into the Trump administration\u2019s approval of chip exports to China. Lawmakers are demanding answers regarding whether <strong>national security was compromised<\/strong> and if the administration ignored intelligence warnings due to the President&#39;s personal relationship with Huang. Simultaneously, <strong>Semafor<\/strong> reports that the <strong>Justice Department<\/strong> is pursuing three separate probes involving <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>), Megaspeed, and Super Micro Computer (<a href=\"\/stock\/SMCI\">SMCI<\/a>) on antitrust and espionage-related grounds.<\/p>\n<h2>Fed and IMF Sound Alarm on AI-Driven Inflation<\/h2>\n<p>Chicago Fed President <strong>Austan Goolsbee<\/strong> characterized the current economic environment as &quot;borderline disturbing,&quot; noting that inflation is persisting in categories like healthcare and services that are insulated from tariffs. Goolsbee specifically highlighted the <strong>AI infrastructure boom<\/strong> as a source of &quot;demand overheating,&quot; suggesting that the Federal Open Market Committee (FOMC) may need to be <strong>more aggressive with interest rate hikes<\/strong> in December. Market odds for a 25-basis-point hike currently stand at over <strong>91%<\/strong>.<\/p>\n<p>The <strong>International Monetary Fund (IMF)<\/strong> echoed these concerns in its latest outlook, stating that while global inflation may ease, <strong>U.S. core inflation<\/strong> will likely remain above the Fed&#39;s 2% target until <strong>mid-2028<\/strong>. The IMF pointed to the dual pressures of high energy costs\u2014with <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> assumed at <strong>$95.74 per barrel<\/strong>\u2014and the massive capital expenditures required for the AI transition. <strong>Goldman Sachs<\/strong> (<a href=\"\/stock\/GS\">GS<\/a>) also released its 2027 outlook, projecting <strong>U.S. GDP growth at 2.4%<\/strong> and a more sluggish <strong>0.9% for the Euro Area<\/strong>.<\/p>\n<h2>Geopolitical Shifts: Iran Conflict and APEC Summit<\/h2>\n<p>To combat rising fuel costs driven by the <strong>Iran war<\/strong>, the White House is preparing to extend its waiver of the <strong>Jones Act<\/strong>, the longest such break in the maritime law&#39;s 100-year history. The extension will allow foreign-flagged ships to continue transporting oil and industrial materials between U.S. ports, though the administration is moving toward a <strong>case-by-case review process<\/strong> for individual voyages to appease domestic shipbuilders.<\/p>\n<p>On the diplomatic front, the Kremlin confirmed that <strong>President Putin<\/strong> is preparing for a landmark three-way meeting with <strong>President Trump<\/strong> and <strong>President Xi<\/strong> at the upcoming <strong>APEC summit in Shenzhen<\/strong>. The discussions are expected to focus on a &quot;new security architecture for Europe&quot; and a potential humanitarian operation in Eastern Ukraine. Putin has reportedly made it clear that <strong>NATO expansion must cease<\/strong>, and the Kremlin expressed hope that the meeting will have a &quot;restorative effect&quot; on international affairs despite the escalating spy scandal involving U.S. tech leadership.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) CEO Jensen Huang has resigned following revelations of an extramarital affair with an alleged Chinese intelligence 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