00:00It's Benzinga, bringing Wall Street to Main Street.
00:02The artificial intelligence boom is complicating the Federal Reserve's efforts to control inflation
00:07as major technology companies continue spending heavily despite higher borrowing costs,
00:12according to Reuters. Economists warn that further rate hikes could disproportionately
00:16affect small businesses, consumers, and industries outside AI, Fed Chair.
00:22Kevin Warsh acknowledged that AI investment is driving demand and prices,
00:26while Cleveland Fed President Beth Hammack suggested higher rates could cool economic activity
00:32beyond the technology sector. The Fed is expected to hold rates steady at 3.75%
00:38to 4% at its October 27th and 28th meeting, although officials anticipate further increases.
00:46Economists warn that housing, construction, and lower-income consumers could face additional
00:51pressure as policymakers pursue their 2% inflation target.
00:55For all things money, visit Benzinga.com.
