Warsh’s steady-rate stance unsettles corporate bosses amid AI-driven yields

Fed Governor Kevin Warsh’s decision to hold the federal funds rate at 3.50%–3.75% has corporate leaders worried about the long end of the yield curve, where steepening rates due to AI‑driven capital demand could raise borrowing costs more than the short-term rate suggests; executives say a modest hike could help temper long rates, but Warsh appears to be weighing inflation hawkishness against political considerations, including President Trump’s stance.