Fed's Bowman: May Support December Rate Hike, Warns Poor AI Returns Could Trigger Stock Market Correction

November 11 — According to Bloomberg, Federal Reserve Governor Bowman said on Tuesday while speaking at the Council on Foreign Relations that, given persistently high inflation, she may support a rate hike at next month's final policy meeting of the year. Bowman said there are signs that inflationary pressures remain and labor market conditions appear to be strengthening, and that more effort is still needed to bring inflation down to around 2%. She also warned that if returns on artificial intelligence investment fall short of expectations, combined with a sharp rise in private long-term interest rates, this could lead to a significant adjustment in equity valuations, and falling stock prices could weaken the resilience of consumer spending.