An AI Bust May Not Cause a Financial Crisis, Dudley Says
Channel: Bloomberg Television
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Read a transcript preview of “An AI Bust May Not Cause a Financial Crisis, Dudley Says” from Bloomberg Television, uploaded on 2026-11-09.
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Language: English (original, creator captions)
[0:00] Former New York Fed president Bill Dudley warning if a bust might lie ahead, we should
[0:04] worry that the current boom may be sowing the seeds for a future financial crisis. Bill
[0:09] joins us now for more. Bill, great to see you. Thank you for being with us.
[0:12] I'm sure when you wrote that, you were not thinking about an affair at the second
[0:16] biggest company in the world. No.
[0:17] It was not.
[0:18] I'm sure that wasn't on your... Necessarily your big o' card, but how much should the
[0:21] Fed be paying attention to turmoil right now in the tech trade?
[0:25] Well, I think they need to be paying attention for a couple of reasons. Number one,
[0:28] obviously, the the AI trajectory has a big implications for the economic outlook in terms of
[0:33] how strong the economy is, and then also upward pressure on, interest rates as AI demand
[0:39] is taking down a lot of credit. But the bigger question, think, term is, is AI
[0:43] gonna go from boom to bust? And if it goes to bust, are we gonna have
[0:46] a repeat of the great financial crisis where the stress on the financial system caused things
[0:51] to fall apart? I think there, I'm a little bit more optimistic because, number one, people
[0:55] are talking about the risk of AI being a a bust. They really weren't talking about
[0:59] the great financial crisis occu