Observations from the Executive Suite

2026-10-06 03:44:00 EDT ***Higher Interest Rates Could Favor Large Players, Smaller Deals*** LAS VEGAS -- The Federal Reserve raised the benchmark federal funds rate by 25 basis points to 3.75%-4.00% on Sept. 26, the first such rate increase since 2023. Policymakers indicate another increase could come before the end of this year if inflation persists. Higher rates can slow the market for mergers and acquisitions and lower Ebitda multiples used to price transactions. Dow Jone

— Modified slightly September 29, 2026 — I have often mentioned ‘Winners and Losers’ in past blogs and speeches. It is an important time to revisit the subject, since, like it or not, Artificial Intelligence is revolutionary. And, after all, history shows that after Hiroshima and World War II, we eventually worked out a stalemate on nuclear weapons with Russia. Remember, if you know how to play the game, Tic-Tac-Toe has no winner on either side. Arguably, AI will be harder to

Kevin Warsh gave an important speech last Friday at the Jackson Hole Economic Symposium. He properly pointed out that Federal Reserve policy has not been especially tight, basically leaving the marketplace to reflect higher interest rates in most international markets and primarily resulting from sizable existing and still increasing structural debts and now increased AI capital spending. Inflation is very persistent as shown in increased diesel and jet fuel costs (airfares w