The Economic Times

US Market: Fed's Warsh points to AI investment, geopolitical risks for higher yields

Federal Reserve Chair Kevin Warsh said rising bond yields reflect economic strength, heavy capital investment in AI and data centers, and geopolitical uncertainty rather than persistent inflation concerns or doubts about the Feds credibility. He emphasized that financial markets inform policymakers but do not dictate decisions, following the Feds recent 25-basis-point rate hike.