Fed Chair Warsh (Q&A): Was skeptical that interest rates would not have an effect on AI, but have seen interest rates have had an effect; believes interest rates matter, in regards to the new technology

• Seen credit spreads widen for some assets and some tightening in some financial conditions.

Commentary from a sitting Fed Chair acknowledging that policy rates transmit into the AI investment complex fits the standard pattern of central banks gradually folding a dominant capital expenditure theme into their reaction function: the first step is always an observation that tightening is working, and only later does that observation become an argument about whether the prevailing stance is restrictive enough. The substantive point is the transmission channel named: credit spreads and financial conditions as the conduit through which rates reach equity-linked capex and the financing of technology build-outs, rather than the labour market. Chairs making this kind of remark in Q&A format are typically probing how far financial conditions can tighten via the credit channel before the real economy follows; the historical sequence is that such framing precedes a more formal treatment in testimony or in the statement's assessment of conditions. What bears watching is whether the spread widening noted is concentrated in technology-linked credit and high-yield paper tied to data-centre and infrastructure financing, since that distinction separates a contained repricing of one sector's funding costs from a broad conditions tightening that would matter for the path. The follow-on tells are subsequent officials echoing the framing, and how the remark interacts with rate pricing at the belly rather than the front, where term premium and credit expectations carry more weight. As Q&A colour rather than prepared remarks, the signal is directional but carries Chair weight.