{"id":305799,"date":"2025-11-21T20:24:12","date_gmt":"2025-11-21T20:24:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/305799\/"},"modified":"2025-11-21T20:24:12","modified_gmt":"2025-11-21T20:24:12","slug":"ai-related-stock-gains-unlikely-to-be-dot-com-boom-replay","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/305799\/","title":{"rendered":"AI-related stock gains unlikely to be dot-com boom replay"},"content":{"rendered":"\n<p class=\"yf-1090901\">(Reuters) -Federal Reserve Vice Chair Philip Jefferson on Friday said he feels the current surge in \u200bstocks related to <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial intelligence;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> is unlikely to be \u200ca replay of the late 1990s dot-com stock boom that ended in a \u200cbust, in large part because AI-related firms are well established and have actual earnings.<\/p>\n<\/p>\n<p class=\"yf-1090901\">A recent Fed report showed some 30% of respondents felt a turn in sentiment against AI is a salient risk \u2060to the U.S.\u200c financial system and the global economy.<\/p>\n<p class=\"yf-1090901\">Jefferson noted that investor enthusiasm for AI firms comes against a \u200dbackdrop of a financial system that is &#8220;sound and resilient.&#8221;<\/p>\n<p class=\"yf-1090901\">Also different from the speculative dot-com boom, he said in remarks prepared \u200bfor delivery to a Cleveland Fed conference, is that AI \u200cfirms have not so far relied heavily on debt financing.<\/p>\n<p class=\"yf-1090901\">Limited use of leverage &#8220;may reduce the extent to which a shift in sentiment toward AI could transmit to the broader economy through credit markets,&#8221; Jefferson said.<\/p>\n<p class=\"yf-1090901\">If future investments in AI infrastructure \u2060require more debt, as some analysts \u200bforecast, &#8220;leverage in the \u200bAI sector could increase\u2014and so could the losses if sentiment toward AI shifts. I will watch this \u200ddeveloping trend closely.\u2060&#8221;<\/p>\n<p class=\"yf-1090901\">Jefferson added that artificial intelligence may transform the world in a dramatic and &#8220;bumpy&#8221; way, though it \u2060is too early to tell with exactly what consequences for the labor market, \u200cinflation, and monetary policy.<\/p>\n<p class=\"yf-1090901\">(Reporting by Ann Saphir;\u200c Editing by Chizu Nomiyama )<\/p>\n","protected":false},"excerpt":{"rendered":"(Reuters) -Federal Reserve Vice Chair Philip Jefferson on Friday said he feels the current surge in \u200bstocks related&hellip;\n","protected":false},"author":2,"featured_media":305800,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,109836,2800,112142,74],"class_list":["post-305799","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-cleveland-fed","tag-federal-reserve","tag-philip-jefferson","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/305799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=305799"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/305799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/305800"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=305799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=305799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=305799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}