Bond market warnings: The AI wave may worsen Kevin Warsh’s inflation dilemma

Analysts point out that the emerging AI boom is significantly raising capital demands and stoking inflationary pressures, with just a few major tech giants planning to invest more than $700 billion in related projects this year. AI-related bond issuance is putting heavy pressure on U.S. Treasury bonds, driving borrowing costs higher. Futures traders are now even starting to bet that the Federal Reserve might be forced to raise interest rates before December this year. (Bloomberg)