FED CHAIR KEVIN WARSH WARNS OF AI SHOCK , PLEDGES TO CONTAIN INFLATION

What happened: Fed Chair Kevin Warsh called rising AI spending a potential "shock" to the U.S. economy and pledged to contain inflation, speaking in Bangkok at an IMF conference. Key numbers: September prices rose 3.7%, a 4-month high, above the Fed's 2% target. The Fed raised rates a quarter point in September, its first hike since 2023. Next meeting Oct. 28. Why it matters: Warsh said AI is hitting demand before supply, and he declined to pre-judge the October meeting. Investors read his posture as a sign the Fed may hold rates steady this month.

Fed Chair Kevin Warsh called rising AI spending a potential "shock" to the U.S. economy and pledged to contain inflation, speaking in Bangkok at an IMF conference.

Warsh said AI is hitting demand before supply, and he declined to pre-judge the October meeting. Investors read his posture as a sign the Fed may hold rates steady this month.