Fed's New Chair Warsh Signals Hawkish Stance on AI Inflation; Zero Rate Cut Odds Hit 79% in 2026

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According to the Federal Reserve's FOMC Meeting Minutes released on July 8, Chair Kevin Warsh expressed concerns about AI stock investments contributing to rising inflation. The Fed noted that notable investments in AI stocks, including NVIDIA (NASDAQ: NVDA), AMD (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO), have impacted asset prices. As a result, the odds of zero Federal funds rate cuts in 2026 surged to 79%, according to Polymarket data as of July 9. Some FOMC members have signaled a potential rate hike rather than cuts in 2026.
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