Yield Approaching 5% Is Not Due to Market Doubts About the Fed Warsh: A Strong U.S. Economy, AI Capital Spending, and Geopolitical Risks Are the Main Drivers

Zhito Finance APP has learned that Federal Reserve Chairman Warsh said on Wednesday that the recent sustained rise in U.S. long-term Treasury yields does not mean investors are losing confidence in the Fed's ability to control inflation. On the contrary, he believes that the strong performance of the U.S. economy, a surge in corporate capital expenditure, and rising global geopolitical risks are jointly pushing up long-term borrowing costs. Among these, "hyperscale cloud service providers," represented by large technology companies, are raising large amounts of financing for artificial intelligence (AI) and data center construction, intensifying competition for funds in the capital market and becoming an important force driving yields higher.