Month: October 2026

By Jacqueline Policastro | Quincy News Correspondent

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    Washington (Quincy News) — High borrowing costs are “one of the largest threats to the AI buildout,” WestCap founder Laurence A. Tosi told Quincy News in an exclusive interview Tuesday.

Tosi had just addressed a Georgetown University audience about the industries artificial intelligence could transform next. Speaking one-on-one afterward, he focused on what could hold that expansion back.

“The underlying reasons for high rates are very stubborn at the moment,” Tosi said. “I think the systemic problems that we have with energy prices and cost of living are here to stay.”

Tosi, a former chief financial officer of Airbnb and Blackstone, is managing partner and founder of WestCap, an operating equity investor with $6 billion in assets under management and 38 portfolio companies.

His warning comes as the Federal Reserve prepares to announce its latest interest-rate decision Wednesday. The central bank is widely expected to leave its target range at 3.75% to 4%, one meeting after raising rates by a quarter point. Economists expect a hold Wednesday and forecast another increase in December. The decision is due at 2 p.m. ET, followed by Warsh’s press conference at 2:30 p.m.

But Tosi believes a one-meeting pause would do little to change the forces keeping capital expensive.

“Already spreads are widening across the AI trade,” he said, citing “an unusual amount of correlated systemic risk” among those that need access to markets to finance the buildout.

Tosi argued that reliance on overlapping sources of financing could leave multiple parts of the AI industry vulnerable at once. Credit spreads represent the additional yield investors demand above benchmark rates. When those spreads widen, they can increase the cost of financing data centers, chips and power projects.

The Fed has flagged similar pressures. Minutes from its September meeting noted heavy private-debt issuance for AI infrastructure was contributing to higher Treasury yields, while spreads on debt issued by major cloud-computing companies remained wide because of the volume and duration of the borrowing.

Tosi said even a modest rate increase can slow how quickly “trillions of dollars” in forward commitments are deployed.

“The difficult thing is,” he said, “I can’t see a way out of it.”

At Georgetown, Tosi used two words to describe his own approach: “First principles.”

Warsh has used the same phrase to frame his effort to reassess how the central bank approaches inflation, economic data, productivity and technological change. In July, he told Congress that five Fed task forces had been directed to “start with first principles,” ask hard questions and reconsider existing practices. One is studying the impact of AI and other general-purpose technologies on productivity and jobs.

Tosi praised Warsh’s early approach to the job.

“I think the chairman’s early meetings and comments have been very balanced,” Tosi said. “I think people were worried that the job would be politicized.”

He said Warsh is experienced and “legitimately cares about the cost of living and inflation and the damage that that can do broadly to Americans.”

“He’s not focused on a short-term outcome,” Tosi added. “And that’s the only way to contain the issues we’re dealing with.”

Tosi said the challenges extend beyond monetary policy, pointing to the federal deficit, government spending and multiple overseas conflicts.

“The problem is, the issues we’re dealing with are intractable,” he said, adding that reversing course will require “a lot of policy power.”

Tosi also criticized tax cuts not matched by spending reductions.

“It’s cutting taxes to curry favor, but you’re not cutting expenses,” he said. “And as any business person knows, that’s not going to work.”

Tosi said Warsh has shown independence, but the broader problems will require action beyond a single Fed decision.

“We have to solve these problems,” he said.

Please note: This story was provided to CNN Wire by an affiliate and does not contain original CNN reporting. This content carries a strict local market embargo. If you share the same market as the contributor of this article, you may not use it on any platform.

By Jacqueline Policastro | Quincy News Correspondent

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    Washington (Quincy News) — Market Recap: U.S. stocks finished higher Tuesday as AI and chip shares regained momentum. The Dow edged up less than 0.1%, the S&P 500 rose 0.6% and the Nasdaq gained 1.2%.

Technology led the market after fresh interest in Anthropic’s initial public offering and stronger orders for computers and related equipment reinforced expectations that AI spending remains strong. Energy stocks declined as oil prices pulled back.

Oil prices fell Tuesday, with U.S. crude settling down 1.8% at $99.90 a barrel and Brent declining 1.7% to $113.88, as diplomatic talks in the Middle East eased some supply concerns. Prices remain near six-month highs. The national average for regular gasoline was about $4.27 a gallon Tuesday, according to AAA, and diesel was about $6.35.

Today’s Focus: The Federal Reserve is widely expected to leave its benchmark interest rate unchanged at 3.75% to 4% Wednesday, one meeting after raising rates by a quarter percentage point. Economists expect a hold but forecast another increase in December. The Fed releases its decision at 2 p.m. ET, followed by Chair Kevin Warsh’s press conference at 2:30 p.m.

For consumers, a hold means no additional increase Wednesday, but also little immediate relief from high borrowing costs. Many credit-card APRs are variable and move with underlying benchmark rates, while auto loans and other forms of consumer credit remain sensitive to broader financial conditions.

Exclusive Interview: High Rates Could Slow AI’s Trillion-Dollar Buildout

High borrowing costs are “one of the largest threats to the AI buildout,” WestCap founder Laurence Tosi told Quincy News in an exclusive interview Tuesday.

Tosi, a former chief financial officer of Airbnb and Blackstone, now leads WestCap, which has $6 billion in assets under management and 38 portfolio companies.

“The underlying reasons for high rates are very stubborn at the moment,” Tosi said, pointing to energy and cost-of-living pressures.

He warned that the strain reaches across an AI expansion that depends on enormous amounts of borrowed capital.

“Already spreads are widening across the AI trade,” Tosi said, citing “an unusual amount of correlated systemic risk” among the companies, lenders and infrastructure projects that need access to markets to finance the buildout.

Because many parts of the industry rely on the same pools of capital, higher borrowing costs can hit several parts of the AI economy at once. Wider credit spreads raise the cost of financing data centers, chips and power projects.

Tosi said even a modest rate increase can slow how quickly “trillions of dollars” in forward commitments are deployed.

Tosi said the problems extend beyond monetary policy, pointing to the federal deficit, government spending and overseas conflicts.

“The problem is, the issues we’re dealing with are intractable,” he said. “We have to solve these problems.”

ON THE SCHEDULE FOR WEDNESDAY, OCTOBER 28, 2026

-2 p.m. ET – Federal Reserve interest-rate decision

-2:30 p.m. ET – Fed Chair Kevin Warsh’s press conference

-After the market closes – Microsoft and Alphabet earnings

-Thursday, before the market opens – Eli Lilly earnings

-Thursday, 8:30 a.m. ET – Third-quarter GDP advance estimate; September personal income and spending, including PCE inflation; and weekly initial jobless claims

-Thursday, after the market closes – Amazon and Intel earnings

-Friday, before the market opens – ExxonMobil and Chevron earnings

Please note: This story was provided to CNN Wire by an affiliate and does not contain original CNN reporting. This content carries a strict local market embargo. If you share the same market as the contributor of this article, you may not use it on any platform.

By Madeline Bartos

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    SAXONBURG, Pennsylvania (KDKA) — A duck at a Pennsylvania animal rescue that lost both of his feet has a brand new prosthetic pair.

Stu arrived at J and J Farms Animal Sanctuary in Saxonburg in May without any feet. The animal rescue said it was told that Stu was born without a leg and was able to overcome his disability until winter hit.

Two-legged birds can shift their weight from one leg to another, tucking one up into their bellies to keep it warm. But since Stu didn’t have that option, J and J Farms said he suffered frostbite and ultimately lost his remaining foot.

“Poor Stu has now resorted to scooting along, using his wings for added stability and forward motion,” the rescue wrote in a Facebook post in May. “He’s developed calluses on the sides of his wings. Our hearts are breaking for him.”

On Friday, the rescue posted a photo of the duck looking incredibly thrilled, writing, “STU HAS FEET!!!”

In an update on Monday, J and J Farms said Stu is “super excited” about his feet, which were built by Infinitely Able Pets Orthotics and Prosthetics.

“So far he’s figured out how to stand up in them, but he’s only been able to take a few steps before pitching forward,” the animal rescue wrote. “His pectoral muscles are unbelievably strong from years of propelling himself with his wings as his primary mode of locomotion. It’s going to take some time for him to adjust his center of gravity and learn to rely on his legs again instead of his wings. We’ll absolutely keep you posted on his progress.”

Please note: This story was provided to CNN Wire by an affiliate and does not contain original CNN reporting. This content carries a strict local market embargo. If you share the same market as the contributor of this article, you may not use it on any platform.