Treasury Secretary Bessent Dismisses AI Financing Risks, Backs Fed Chair Warsh After Rate Hold

Treasury Secretary Scott Bessent said Wednesday he is monitoring financing for the artificial intelligence build-out but sees no systemic problem, even as yields on some AI-related debt climb into double digits. In a CNBC interview, he said neoclouds renting AI infrastructure are "a small component of the overall ecosystem." Bessent pointed to CoreWeave Inc. as a focus of concern over the hundreds of billions borrowed to fund the boom, but said "financing is getting done" and noted Meta is choosing equity financing. He spoke shortly after the Federal Reserve held rates steady, following a September increase. Bessent reiterated his and President Donald Trump's confidence in Fed Chairman Kevin Warsh and said a future rate hike would not "necessarily" be a policy mistake, citing strong growth. He again urged policymakers to keep an "open mind" on whether the energy shock to inflation proves transitory. Benchmark 10-year Treasury yields remain above 5%, down from two-decade highs, with Bessent linking elevated yields to the Fed's pre-election 2024 rate cuts.