Fed Pauses Rate Hikes; Warsh Warns Rates Hitting AI Trade
The Federal Reserve left rates unchanged at its October meeting, while Fed Chair Kevin Warsh warned that higher rates are already getting 'in the cracks' of the AI CapEx trade with credit spreads widening.
What we know
An account on X RTd the breaking news of the Fed pause. Another account on X reported Warsh's specific comments that 'interest rates get in the cracks' and credit spreads for certain assets are widening, though he acknowledged the AI CapEx story is still broadening. Another account on X shared a viral quip that Warsh tracks oil futures on Hyperliquid. Another account on X RTd commentary that the Fed is structurally set up to fail because it needs frothy stocks to service the national debt.
How the story developed
The Federal Reserve left rates unchanged at its October meeting, while Fed Chair Kevin Warsh warned that higher rates are already getting 'in the cracks' of the AI CapEx trade with credit spreads widening.
The Federal Reserve held rates at 3.75–4.00% in a 10-2 vote, with equities posting a third consecutive winning session, though the 10-year yield pushed back above 5% at 5.04%.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.