A draft U.S. Treasury report warns AI market risks could be comparable to the
dot‑com bubble, digital outlet NOTUS reports. Prepared by Treasury staff for
Treasury Secretary Bessent, Fed Chair Kevin Warsh and several federal financial
regulators, the draft was completed weeks ago and is awaiting formal sign‑off
before distribution to intended recipients and likely public release. The report
says AI firms are more deeply embedded in the U.S. economy than internet‑era
companies and could pose systemic risks if financial conditions shift, projected
productivity gains fail to materialize, or supply‑chain and other bottlenecks
constrain the sector. It flags heightened vulnerability if financing for
infrastructure projects dries up or long‑term growth expectations are unmet,
drawing parallels with conditions before the internet crash. A Treasury
spokesperson called the draft unaudited and not department policy, saying the
official position is that AI will be a key driver of a new "golden age,"
delivering unprecedented productivity gains, expanding economic opportunities
and empowering U.S. workers and firms.
