2 days ago
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Reuters
Fri, November 21, 2025 astatine 7:47 AM CST 1 min read
(Reuters) -Federal Reserve Vice Chair Philip Jefferson connected Friday said helium feels the existent surge successful stocks related to artificial quality is improbable to beryllium a replay of the precocious 1990s dot-com banal roar that ended successful a bust, successful ample portion due to the fact that AI-related firms are good established and person existent earnings.
A caller Fed study showed immoderate 30% of respondents felt a crook successful sentiment against AI is simply a salient hazard to the U.S. fiscal strategy and the planetary economy.
Jefferson noted that capitalist enthusiasm for AI firms comes against a backdrop of a fiscal strategy that is "sound and resilient."
Also antithetic from the speculative dot-com boom, helium said successful remarks prepared for transportation to a Cleveland Fed conference, is that AI firms person not truthful acold relied heavy connected indebtedness financing.
Limited usage of leverage "may trim the grade to which a displacement successful sentiment toward AI could transmit to the broader system done recognition markets," Jefferson said.
If aboriginal investments successful AI infrastructure require much debt, arsenic immoderate analysts forecast, "leverage successful the AI assemblage could increase—and truthful could the losses if sentiment toward AI shifts. I volition ticker this developing inclination closely."
Jefferson added that artificial quality whitethorn alteration the satellite successful a melodramatic and "bumpy" way, though it is excessively aboriginal to archer with precisely what consequences for the labour market, inflation, and monetary policy.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama )
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