The author agrees with Greg Ip of the Wall Street Journal that AI investment is vulnerable to tighter financial conditions, but notes that such tightening can come from capital markets rather than only from the Fed. At his September 16 press conference, Fed Chairman Kevin Warsh attributed rising long-term Treasury yields to stronger growth and competition for capital from hyperscalers building AI infrastructure. Fed officials including Lisa Cook and Philip Jefferson have argued that the natural rate of interest may be rising because of AI-driven investment and faster productivity growth. The article suggests that if long-term yields are already rising, the Fed may not need to raise its overnight rate as much, while higher yields are already making mortgages more expensive.
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DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 101.98 |
| Change that session | +0.20% |
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