The bond market is showing skepticism towards Fed Chair Warsh's economic outlook and policy proposals. Investors are not responding positively to his messaging, indicating a disconnect between the Fed's expectations and market sentiment.

Federal Reserve Governor Lisa Cook stated that artificial intelligence is causing a significant shift in the U.S. labor market, potentially leading to a rise in unemployment that may not be mitigated by lower interest rates. She described this moment as the most substantial reorganization of work in generations.