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The AI boom could transform the economy, but who is financing it and where the risks are building may matter just as much as the technology itself.
Joao Gomes, Wharton Professor of Finance and Senior Vice Dean of Research, Centers, and Academic Initiatives, argues that the Federal Reserve is too focused on inflation and not focused enough on financial stability.
Gomes discusses the opaque role of private credit, lessons from the housing crisis and internet boom, the potential impact of AI investment on long term productivity, and why the Fed needs better models for understanding the financial risks surrounding AI.
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