At the IMF-World Bank Annual Meetings in Bangkok, policymakers said the AI boom is both a key driver of global growth and a source of risk if investment in the technology falters. The IMF said AI helped cushion the shock from higher energy prices caused by the Middle East war, with global trade rising 8.3% over 2023–2025, a figure that would be closer to 4.6% without AI-related products. Federal Reserve Chair Kevin Warsh called AI the “most consequential change” to the global economy in his lifetime, but warned the path ahead would be “bumpy.” An IMF report projected that a drop in AI investment could cut global GDP by 0.4% by 2028, while Moody’s Analytics warned a prolonged conflict could “puncture” the boom. IMF chief Kristalina Georgieva said that without safeguards, “the risks may exceed the opportunities.”
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Leaders weigh huge benefit , risks of AI for global economy
Read the original on digitaljournal.com ↗
Keywords
IMFartificial intelligenceGDP growthKevin WarshFed
Open a keyword to see other news on the same topic.
Related news
- Leaders weigh 'huge benefit,' risks of AI for global economy
Leaders at the IMF-World Bank Annual Meetings in Bangkok said the AI boom is a major driver of global growth but could pose economic risks if investment falters. The IMF said AI spending helped cushion the shock from higher energy prices caused by the Middle East war, and that global trade rose 8.3% over 2023–2025, versus about 4.6% without AI-related products. Federal Reserve Chair Kevin Warsh called AI the 'most consequential change' of his lifetime but warned the path ahead would be 'bumpy'. An IMF report projected that a decline in AI investment could reduce global GDP by 0.4% by 2028, while Moody's Analytics warned a prolonged conflict could 'puncture' the boom. IMF chief Kristalina Georgieva added that without safeguards, 'the risks may exceed the opportunities'.
- IMF warns AI boom is widening global divide
The IMF warned that low-income, energy-importing countries outside the AI value chain risk falling further behind as the AI boom increasingly drives global growth. Managing Director Kristalina Georgieva cautioned that relying on a single growth driver is risky and that AI could widen economic disparities. Debt-service costs in low-income countries rose from 8% to 14% of government revenue in recent years due to higher inflation and interest rates. Recent decisions on the Poverty Reduction and Growth Trust will allow more than three times the concessional lending available before, and ten partners committed more than $100 million for capacity development. Georgieva also urged central banks to stay laser-focused on price stability.
- Fed sees AI boom adding to inflation headache , but others may pay for the medicine
The Reuters article reports that the AI investment boom, increasingly seen at the Federal Reserve as a driver of inflation, forces central bankers to cool the rest of the economy with higher rates, and the pain falls unevenly. Small businesses, credit-dependent households and a weak housing market may bear the brunt, while large AI firms such as Amazon, Apple and Anthropic are seen as largely immune to rate hikes. ADP chief economist Nela Richardson said the Fed's 2% inflation goal has been unmet for more than five years and that fewer routes to it remain open. Fed Chairman Kevin Warsh called AI investment a “shock” to prices and demand, with the industry expected to invest about $1 trillion next year, roughly 3% of GDP. The Fed meets October 27-28 and is expected to hold rates at 3.75%-4.00%, while officials debate the pace and extent of further hikes.
- 3 Words From Fed Chair Kevin Warsh Suggest the Worst Is Yet to Come for Wall Street
The article argues that Fed Chair Kevin Warsh's repeated use of the phrase “dose of accommodation” signals that the Fed does not view monetary policy as restrictive and may keep raising rates. The FOMC raised rates by 25 basis points to 3.75%-4.00% on Sept. 16, and the article notes that September PPI later rose 6.3% on a headline basis and 5% for core PPI. The author contends that higher borrowing costs could weigh on debt-funded AI infrastructure spending and slow AI growth projections, and that valuations leave little margin for error.
- Gold Edges Up As Oil Prices , Yields Dip
Spot gold rose 0.2% to $4,171.62 an ounce and U.S. gold futures gained 0.2% to $4,190.15, as market expectations for a Federal Reserve interest rate hike in October diminished. The dollar held firm while the euro weakened after nationwide protests in France over living costs turned violent. Treasury yields fell after Fed Chair Kevin Warsh expressed optimism about U.S. economic resilience and AI's impact on growth and productivity.
- Gold Prices Rise Above $4,200 in Futures Trading as Fed Rate Hike Expectations Ease
Gold rose above $4,200 an ounce in US futures on Monday as traders scaled back expectations of another Federal Reserve rate hike after comments from Chair Kevin Warsh. Spot gold gained 0.4% to $4,180.29, while US gold futures rose 0.5% to $4,200.92. The implied probability of a 25-basis-point hike at the next meeting fell below 20%, after US inflation data released the previous week exceeded expectations. Silver, platinum and palladium also gained, while the US Dollar Index was roughly flat at 101.80. ANZ maintains a positive long-term view and expects gold to rise above $5,000 an ounce during 2027, though elevated bond yields and a strong dollar could pressure prices in the near term.
Related markets
Latest news
- TRX Gold to Present at Red Cloud's Fall Mining Showcase 2026
TRX Gold will present at Red Cloud's Fall Mining Showcase 2026, an in-person conference at the Omni King Edward Hotel in Toronto on October 28 and 29, 2026. Stephen Mullowney is scheduled to present on Thursday, October 29, 2026 at 12:00 PM Eastern. The release describes the company as a gold producer advancing the Buckreef Gold Project in Tanzania, which includes an established open pit and a 2,000 tonnes per day plant. The May 2025 PEA outlines average annual gold production of 62,000 oz over 17.6 years.
- Tesla Stock vs. the S&P 500: Which Investment Wins Through 2030?
The article argues Tesla trades at roughly 203 times this year's expected earnings and 13 times expected sales, a valuation that looks very expensive given gross margin pressure and a slower-than-expected robotaxi rollout. The flying Roadster, slated for production in 2028, is unlikely to make a meaningful sales or earnings contribution before 2030. The author thinks a Tesla-SpaceX merger by the end of the decade, likely an all-stock deal, is more likely than not and would be a key factor in how Tesla stock performs against the S&P 500 through 2030.
- SpaceX surprises Wall Street with Oct. 20 earnings date — here's why
SpaceX (SPCX) will release earnings on Oct. 20 after the market close, a surprise since earnings dates are usually shared weeks in advance. Evercore ISI analyst Kutgun Maral says possible reasons include putting updated financials on record before new financing or getting ahead of major lock-up releases, though scheduling is also possible. Reuters reported SpaceX is seeking $40 billion in financing to buy advanced Nvidia AI chips, including about $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo expected to lead. The lock-up schedule includes 1.30 billion shares two days after earnings, 329 million on 10/24, and a remaining 857 million tranche of the 180-day group.
- AEP Partners with Amazon and X-energy to Explore Advanced Nuclear Energy in Indiana
American Electric Power (AEP) has announced a joint development agreement with X-energy to evaluate the feasibility of a 960-megawatt advanced nuclear project at a former coal plant site in Sullivan County, Indiana. Amazon is supporting development through a funding agreement. If the project reaches a final investment decision and is built, Amazon intends to buy the power under a long-term contract covering the facility's costs and operations. The initial project would include 12 Xe-100 units of 80 MW each, and the companies say it could create jobs, expand the local tax base and strengthen the grid for more than 60 years. AEP says the agreements include the financial safeguards it considers essential for any nuclear project to move forward.
- Talamore Marks One Year at Coffee with Major Advances Toward a 2027 Construction Decision
Talamore Mining marks one year since closing its acquisition of the Coffee Gold Project in Yukon, Canada, from Newmont Corporation on October 17, 2025. The company has assembled a financing package of up to C$688 million, including a C$149.5 million equity offering, a C$450 million secured project debt facility and up to C$88 million from a warrant early-exercise program. A primary road permit received in August 2026 allows completion of the 214-kilometre Northern Access Route from Dawson City. The February 2026 Preliminary Economic Assessment outlined a 13-year open-pit heap leach mine with an after-tax NPV (5%) of US$2.3 billion and an after-tax IRR of 47.8%. G Mining Services is completing the Feasibility Study, expected in Q1 2027, ahead of a construction decision targeted for the first half of 2027.
- Tiger Gold Extends Mineralization to the South at Ceibal, Drilling 268 m @ 0.5 g/t Au from Surface
Tiger Gold reported assay results from hole CEDDH-023 at its Ceibal target within the Quinchía Gold Project in Colombia. The hole intersected 268 metres grading 0.5 g/t Au from surface, extending mineralization south into a previously untested part of the corridor. Mineralization remains open to the west and southwest, where additional holes are testing for extension, and assays from Ceibal and Tesorito are pending. The drilling is intended to support a maiden Mineral Resource estimate, targeted for near the end of Q1 2027.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.