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Federal Reserve Governor Michelle Bowman says a sharp fall in share prices could hurt economic activity if returns on AI investments fail to meet expectations. She made the remarks at a Council on Foreign Relations event in Washington, Bloomberg reports.
Why it mattersThat is a warning about a possible market downturn, not a prediction that one is coming or a statement of Fed policy. Still, it puts a practical question beside the AI boom: how much damage could disappointment do beyond the investors who placed the bets?
Discuss: If AI investment returns disappoint, should policymakers focus on limiting wider economic fallout, or let investors absorb the risk?
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