Goldman Sachs: The world is entering “the largest cycle of capital demand in human history”; factors such as AI and reindustrialization are driving capital costs higher, and the Federal Reserve is merely a “passenger”

Goldman Sachs Mark Wilson, Head of European Hedge Fund Operations, noted in his latest weekly report that the global economy is moving beyond the era of “excess savings” and entering “the most capital-hungry investment cycle in history,” driven by AI infrastructure development, reindustrialization, defense restructuring,power grid reconstruction, supply chain restructuring, and sovereign debt financing—a “cycle of investment with the greatest appetite for capital in history.” He believes this competition for capital will be a persistent medium-term feature, driving capital pricing and costs higher and thereby transforming the investment paradigm.Wilson emphasized that the Federal Reserve is more of a “passenger than a driver” in this discussion; the fundamental driver of rising yields is not monetary policy but structural capital demand, and one should not expect the 30-year U.S. Treasury yield—which recently broke through a key threshold—to reverse course anytime soon.