Fed Chair Kevin Warsh’s warning to AI investors: ‘Interest rates get in the cracks’

Good morning. The Federal Reserve held its benchmark interest rate steady at 3.75%–4% on Wednesday, citing the need for more economic data to guide its next move as inflation remained elevated and economic growth and business investment stayed strong. For investors, the decision raises a broader question: Can higher interest rates restrain the AI investment boom without derailing the wider expansion? Fed Chair Kevin Warsh said at a news conference on Wednesday that AI investment is not insulated from monetary policy.

Source: Fortune Crypto