Federal Reserve Governor Bowman indicated that she might support an interest rate hike at the December policy meeting given persistently high inflation. Bowman stated that there are signs that inflationary pressures remain, labor market conditions appear to be strengthening, and efforts will still be needed to bring the inflation rate down to around 2%.
Bowman warned that if returns on artificial intelligence investments fall short of expectations, coupled with a sharp rise in long-term private interest rates, it could lead to a significant adjustment in stock valuations, and falling stock prices could weaken the resilience of consumer spending. (Source: Bloomberg)