Foster Leads Effort Calling for Action on Potential AI Bubble

Washington, DC — Today, Representative Bill Foster (D-IL) led 21 Members of the House Financial Services Committee in calling on the Financial Stability Oversight Council (FSOC) to convene a working group of financial, technology, and economic experts to assess the vulnerability of the U.S. financial system to a potential sharp drop in the value of AI-related assets and infrastructure.

The letter asks FSOC to include a discussion of AI investment risk in their 2025 Annual Report, and to brief Congress within 90 days on the working group’s findings and recommended actions or contingency plans.

In the letter to Treasury Secretary Scott Bessent, the Members wrote:

“Over the past two years, private and corporate investment tied to artificial intelligence has expanded at a historic pace. These investments—ranging from semiconductor purchases and data-center construction to vendor financing, private funding, and bespoke financial arrangements—have concentrated capital in a small set of companies with complex contractual structures. 

“Given the scale, complexity, and concentration of AI-related investment in recent years—and the potential for hidden risks that could affect the financial system in the event of a downturn for the sector—FSOC should act now to map exposures, close data gaps, and determine whether action is needed to make the U.S. economy more resilient in the event of an economic downturn.”

This letter was cosigned by Reps. Brad Sherman (D-CA), Stephen Lynch (D-MA), Al Green (D-TX), Emanuel Cleaver (D-MO), Joyce Beatty (D-OH), Nydia Velázquez (D-NY), Gregory Meeks (D-NY), David Scott (D-GA), Jim Himes (D-CT), Juan Vargas (D-CA), Josh Gottheimer (D-NJ), Vicente Gonzalez (D-TX), Sean Casten (D-IL), Ayanna Pressley (D-MA), Rashida Tlaib (D-MI), Ritchie Torres (D-NY), Sylvia Garcia (D-TX), Nikema Williams (D-GA), Brittany Pettersen (D-CO), Cleo Fields (D-LA), and Janelle Bynum (D-OR). A copy of the full letter can be found here.

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