Fed's Bowman Warns of Stock Downturn If AI Returns Fall Short
· Business · LiveMint, Bloomberg
Federal Reserve Governor Michelle Bowman warned that weak AI investment returns could trigger a sharp stock market correction, risking consumer spending resilience. She flagged rising private long-term rates and noted inflation remains persistently above the 2% target despite firm labor markets. Bowman indicated support for another rate hike at the December central bank meeting amid persistent price pressures. The Fed held rates steady at its October meeting after a September quarter-point increase, the first hike since 2023.
Why it matters
Persistent inflation and potential stock declines could strain Indian consumers and sectors like housing while tightening global financial conditions.
Read the original report — LiveMint
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