The Federal Reserve held its benchmark interest rate between 3.75% and 4%, citing the need for more data as inflation remained elevated and economic growth stayed strong. Kevin Warsh said AI investment is not insulated from monetary policy: higher rates can affect financing, capital raised and the returns investors demand. Widening credit spreads suggest investors are becoming more selective, particularly for data centers and computing infrastructure. At Marsh, Julius Bendikas said Treasury yields have room to fall as expectations for rate hikes moderate, but strong growth, elevated energy prices and large fiscal deficits create upside risks. After posting strong quarterly results for Google Cloud, Alphabet shares fell more than 11% after hours, wiping out over $280 billion in market value.
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