Federal Reserve raises rates amid AI growth and bond market tension

Financial markets are currently experiencing a divergence between equity and bond performance. While the technology sector, particularly semiconductors, continues to expand due to artificial intelligence, long-term bonds are facing rising financing costs and increasing sovereign debt absorption challenges.

In the United States, the Federal Reserve has begun a shift in policy. On September 16, 2026, the Fed raised its benchmark interest rate by 25 basis points to a range of 3.75–4.00%, marking its first increase since 2023. Federal Reserve official Kevin Warsh noted that while financial conditions remain somewhat accommodative, the central bank is actively withdrawing accommodation as inflation persists.

This environment of high interest rates has led to a significant concentration in AI-driven stocks, drawing comparisons to the 1999 mining boom. Conversely, sectors such as Real Estate Investment Trusts (REITs) have been largely neglected, with some companies trading at discounts of 30% to 50% relative to their net assets. Analysts suggest that as high rates eventually constrain the economy and prompt central bank pivots, these tangible assets could see a significant rebound.