US Treasury Secretary Bessent stated that although yields on some AI-related debt have climbed into double digits, new cloud service providers account for only a limited share of the entire AI industry, so financing risks do not currently pose a major problem. Related financing deals are still being carried out, and companies such as Meta have also begun to raise funds through equity issuance.
He also said that future Federal Reserve rate hikes would not necessarily constitute a policy error, and noted that an open attitude should be maintained when assessing whether an energy shock is only temporarily pushing up inflation.
Bessent further projected that once the US-Iran conflict ends, global oil supply will become more ample, which would help ease inflation and lower borrowing costs.
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