US Fed Meeting Sparks Market Volatility Amid High Inflation and AI Concerns

The US Federal Reserve has begun its rate-setting meeting to address high inflation and concerns about AI's rapid adoption. Markets are on edge, anticipating a likely hike in interest rates to combat persistently high consumer prices.

Brent crude futures have surged towards $110 per barrel, while the 10-year US Treasury note yield hit 5.03%, its highest level since 2007 before the global financial crisis.

The surge in energy costs has increased pressure on central banks to raise borrowing costs. The European Central Bank recently lifted interest rates in the eurozone, and the Bank of England is forecast to maintain its benchmark rate on Thursday.

Fed policymakers' decision will be crucial for stocks, with major Wall Street indices experiencing losses following losses in Europe and Asia.