BUBBLES POP: America’s top banker sounds warning on US stock market fall.

There were a “lot of things out there” creating an atmosphere of uncertainty, he added, pointing to risk factors like the geopolitical environment, fiscal spending and the remilitarisation of the world.

“All these things cause a lot of issues that we don’t know how to answer,” he said.

“So I say the level of uncertainty should be higher in most people’s minds than what I would call normal.”

Much of the rapid growth in the stock market in recent years has been driven by investment in AI.

On Wednesday, the Bank of England drew a comparison with the dotcom boom (and subsequent bust) of the late 1990s – and warned that the value of AI tech companies “appear stretched” with a rising risk of a “sharp correction”.

“The way I look at it is AI is real, AI in total will pay off,” he said.

“Just like cars in total paid off, and TVs in total paid off, but most people involved in them didn’t do well.”

He added some of the money being invested in AI would “probably be lost”.

Well, yes.