Finance

Recent FOMC minutes reveal that a majority of central bank officials are prepared to raise interest rates if inflationary pressures from regional conflicts remain elevated. While the benchmark rate is currently held between 3.5% and 3.75%, the introduction of Kevin Warsh as the new Fed chair comes as policymakers debate a shift toward a more hawkish stance.

Despite reporting record sales driven by artificial intelligence demand, Nvidia shares faced downward pressure as investors reacted to concerns regarding geopolitical market access in China. Similarly, Walmart saw a decline in its stock price after maintaining its annual financial forecast, even as it reported strong quarterly sales growth from budget-conscious shoppers.

The U.S. economy expanded at an annualized rate of 2.0% in the first quarter of 2026, primarily supported by massive private investment in AI infrastructure and digital equipment. This robust spending in the technology sector has created a 'two-speed' economy, where high-growth tech firms continue to thrive while traditional consumer-facing industries experience softening demand.