“The AI boom is in full flight,” Bank of Canada governor Tiff Macklem said at a press conference, after cutting interest rates by a quarter point. “If there were a shift in sentiment about the payoff of that, you could see a sharp revaluation downwards. Against a background of a market that is pretty buoyant, yes, that could have some economic consequences.” (The Logic)

Talking point: Macklem isn’t predicting doom. He also said that he thought artificial intelligence has “great potential to improve productivity and raise standards of living.” But if the history of technological revolutions is a guide, those improvements will come after a painful stock market crash once early returns fall short of unrealistic expectations. The central bank typically deals with financial stability issues separately, but bubbly stock markets came up during the latest deliberations, senior deputy governor Carolyn Rogers said. “Bubbles are good until they burst, right?” Rogers said. “For now, we’re doing what everyone else is doing and watching it closely and hoping that it doesn’t turn into a financial stability risk.”