NY Fed’s Williams: US economy vulnerable to shift in AI enthusiasm

A Fed official naming AI sentiment itself as a vulnerability is notable, because it treats market narrative as a macro risk factor rather than a sector story. The remark implicitly links the AI trade to the wider economy's stability, without saying how or through which channel. That ambiguity is the point worth watching: whether other policymakers echo this framing, and whether it starts appearing in how the Fed talks about financial conditions.