Moody's Chief Economist Sounds Alarm On AI Over-Investment, Soaring Debt — Says Risks Could Hit Credit Markets, Not Just Investors

Moody's chief economist, Mark Zandi, has raised concerns about excessive investment in AI and the growing national debt, warning that these issues could pose significant risks to credit markets. Zandi highlighted that private investment in AI is accelerating at an unsustainable pace, potentially leading to a bubble. He also pointed out that the increasing national debt, driven by rising interest rates and deficits, is a major economic risk.