Fed Chair Kevin Warsh Just Drove a Dagger Through Wall Street's AI-Driven Rally With 6 Blunt Words

Fed Chair Kevin Warsh warned that AI stocks are not immune to rising interest rates, stating that 'interest rates get in the cracks' affecting investments across the board. With expected rate hikes beginning in December and elevated long-duration Treasury yields driven by concerns over U.S. debt surpassing $40 trillion, AI companies face pressure on two fronts: higher borrowing costs for debt-financed data center expansions and increased corporate lending rates.