FITCH WARNS AI BOOM AND RISING YIELDS THREATEN GLOBAL MARKETSFitch Ratings warns that global credit risks are deteriorat | Hanami
FITCH WARNS AI BOOM AND RISING YIELDS THREATEN GLOBAL MARKETS
Fitch Ratings warns that global credit risks are deteriorating heading into 2027, citing AI investment uncertainty, elevated energy prices and tighter financing conditions.
Fitch forecasts the Fed policy rate reaching 4.25% and remaining there through 2027, with one additional hike expected this year.
The agency projects the US 10-year Treasury yield at 4.8% by end-2027, but warns that prolonged disruptions in the Strait of Hormuz could push yields higher.
Fitch also highlights the risk that AI infrastructure spending may exceed sustainable demand, potentially triggering a sharp pullback in investment.