The MSCI EM Index rose 1% on October 16, 2026, lifted by upbeat remarks on artificial intelligence from Fed Chairman Kevin Warsh at the IMF and World Bank annual meetings in Bangkok. Warsh described AI as the most consequential change to the US and global economy in his lifetime, while warning of potentially severe inflationary pressure in the short term. The Fed raised its target rate by 25 basis points on September 16 to a range of 3.75%-4.00%, with inflation at 0.6% in September. After net capital outflows of $26.3 billion in September, including $19.2 billion from EM equities, flows turned positive thanks to strong earnings in Taiwan and South Korea’s technology and semiconductor sectors.
Source: Read the original article


