Fed officials! Waller calls for a 50 basis point rate hike in December; Bowman warns that AI investment returns falling short of expectations could trigger a sharp correction in US stocks.

Zhitong Finance APP has learned that multiple Federal Reserve officials successively released hawkish signals on Tuesday, believing that U.S. inflationary pressures remain stubborn and monetary policy still needs further tightening. Among them, Federal Reserve Governor Bowman stated that persistently elevated inflation and a labor market that is becoming more solid mean the Federal Reserve still needs to continue raising interest rates, while warning that if the return on artificial intelligence (AI) investment fails to meet market expectations, U.S. stocks may face a significant correction and deal a blow to consumer spending and the overall economy.