Cohn Warns High Energy Prices, AI Uncertainty Threaten Global Economy

IBM Vice Chairman Gary Cohn expressed concerns about the state of consumers and the global economy during an interview on 'Face the Nation with Margaret Brennan' on September 20, 2026. He noted that high energy prices are affecting consumers worldwide, leading to protests in countries such as Syria, Philippines, and Guatemala.

Cohn highlighted that the consumer sentiment has turned negative due to rising diesel costs, which have a ripple effect on food production. He also mentioned that AI is causing uncertainty among people, who are unsure about its impact on jobs.

The interview touched on the recent rate hike by the Federal Reserve, led by new Chair Kevin Warsh. Cohn stated that the Fed's decision was not surprising, given their dual mandate to achieve full employment and stable prices. He noted that the inflation rate is still above 2%, which necessitated the interest rate increase.

Cohn explained that the rate hike will make borrowing more expensive, aiming to reduce consumer demand in response to the low supply of energy products. However, he acknowledged that this cannot go on indefinitely and warned that consumers' savings will eventually dwindle.