Fed Warns AI Bubble Could Trigger a Big Stock Correction
Federal Reserve Vice Chair for Supervision Michelle Bowman warned on Tuesday that stocks face “a large correction in equity valuations” if returns on artificial intelligence investments fall short of expectations. Speaking at the Council on Foreign Relations in Washington on November 10, Bowman put the AI bubble debate in the starkest terms yet from a senior US central banker. AI-related debt is on track to exceed $800 billion this year, she said, and the money pouring into data centers, chips and models isn’t yet paying for itself. ...