Bank of England and Fed Chair Warn of AI Correction
Also mentioned concerns over geopolitical tensions as a global risk
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- Written by Banking Exchange staff
The Bank of England warned today of a potential risk of a market correction, especially due to overheated AI tech firm evaluations.
The Federal Reserve also warned of fairly high-valued assets this week.
The Bank of England also mentioned concerns over geopolitical tensions as a global risk, even in the backdrop of strong second-quarter earnings reports across the world, but especially from United States-based tech firms.
Some analysts have stated, however, that AI-related stocks have had earnings to back up the evaluations, which were fundamentally different during the internet bubble.
Earnings season for Q3 is just getting underway.