Fed Hike Bets Meet AI Debt Boom: Where Does the Squeeze Land?

The central bank of the United States, which sets US interest rates and supervises banks.

Because the dollar is used worldwide, its rate decisions affect borrowing costs and markets in many other countries.

Computer systems that perform tasks that normally require human intelligence, such as understanding language, recognising images or making decisions.

AI is changing work, media and public services, raising questions about jobs, safety and regulation.

The annual return an investor earns on a bond, which moves in the opposite direction to the bond's price.

Rising yields mean higher borrowing costs for governments, companies and home buyers.