Fed: AI tops list of US financial stability risks

 The Federal Reserve's Financial Stability Report identified artificial intelligence as a major threat to the stability of the US financial system on Friday, citing elevated asset valuations, rapidly rising debt tied to data center construction, and growing cybersecurity risks.

Among surveyed contacts, 87% identified AI as a key financial stability risk, up from 50% in the Fed's spring survey. "Measures of equity valuations have remained high, partly driven by market enthusiasm for super intelligence (SI). The ratio of equity prices to earnings for S&P 500 companies stayed well above its historical median," the report noted.

Cybersecurity threats were cited by 43% of respondents, while 48% pointed to higher Treasury long-term interest rates as another significant risk.

https://breakingthenews.net/Article/Fed:-AI-tops-list-of-US-financial-stability-risks/67563006