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Bessent Says AI Financing Stress Not "Problematic," Neoclouds a Small Component

Bessent Says AI Financing Stress Not "Problematic," Neoclouds a Small Component

MT newswireMT newswire2026/10/28 23:09
07:09 PM EDT, 10/28/2026 (MT Newswires) -- Treasury Secretary Scott Bessent said the government is monitoring financing for the AI build-out but does not see recent signs of stress as problematic, CNBC reported Wednesday, citing an interview with Bessent. Asked about yields on some AI-related debt rising into double digits, Bessent said neoclouds are a small component of the overall ecosystem. Financing and deals are still getting done, he told CNBC, and companies such as Meta are choosing to finance with equity, the report said. Bessent also reiterated his and President Donald Trump's confidence in Fed Chairman Kevin Warsh, speaking shortly after the Federal Reserve held rates steady Wednesday. Asked whether he would view a future Fed rate increase as a policy mistake, Bessent said "that's not necessarily so," citing strong economic growth. He repeated his call for policymakers to keep an open mind on whether the energy shock to US inflation proves transitory, according to the CNBC interview. Bessent also linked the rise in long-term yields to the Fed's rate cuts before the 2024 election, saying the 10-year yield "never looked back." He added that the bond market has done a lot of tightening, citing comments Warsh made at the July meeting.
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