Internal Treasury Report Warns AI Bubble Could Trigger Economic Downturn

What was said

"Stock markets, private credit markets, companies financing data center buildouts, cloud providers, chip manufacturers, and utilities would all feel the effects."

A draft Treasury Department report warns that an AI market downturn would send shockwaves throughout the entire economic ecosystem, comparing risks to the dot-com crash of the early 2000s. The document, whose existence has not been previously reported, represents a significant departure from the Trump administration's public optimism about AI. Treasury Department officials publicly dismissed the findings as unvetted and not representative of official policy, with a spokesperson insisting AI will be a key driver of America's new golden age.