Warsh Declares Global Investment Surge Reverses Decades of Savings Gluts

Federal Reserve Chair Kevin Warsh is shifting the economic narrative from 'global saving glut' to 'global investment surge.' Speaking at the G20 finance ministers’ meeting on August 31, 2026, Warsh emphasized the significant increase in business capital expenditures and corporate profits.

The numbers behind this shift are striking: business capital expenditures have grown by approximately 9% over the last four quarters, the fastest clip since 2021. More than half of recent capex growth can be attributed to artificial intelligence infrastructure investments, including chips, data centers, and related buildout.

S&P 500 firm profits grew by over 20% in the past year, driven by high margins and low market volatility. Annualized token sales for leading AI models have surged past $100 billion, reflecting a 500% year-over-year increase.