Fed's Schmid: Need to understand if AI "ecosystem" is getting too big to fail
QQQ•Kansas City Fed President Jeff Schmid said the Fed needs to assess whether the network of firms and contracts in the AI and data-center build-out is becoming too big to fail.
1. Schmid flags systemic risk
Schmid said the Fed needs to understand whether the AI ecosystem is becoming so large that it could require public bailouts. He compared the concern with the bailouts of major financial institutions during the 2007–2009 financial crisis and asked whether anything in the ecosystem is systemic.
