Hassett: 'I Don't Expect' Market Turmoil After AI Warnings
White House Adviser Says AI‑Related Risks Unlikely to Shake Markets, Administration Mulls Safeguards
WASHINGTON — White House economic adviser Kevin Hassett told reporters that growing warnings about the risks of artificial intelligence are unlikely to cause turmoil in financial markets. He added that the Trump administration is exploring additional safeguards to keep pace with the technology’s rapid development.
Hassett, who chairs the Council of Economic Advisers, is the president’s chief economic policy adviser. In a statement released earlier this week, he said he does not expect the increasing scrutiny of artificial‑intelligence (AI) systems to trigger volatility in markets that have traditionally been sensitive to broader economic uncertainty.
“We’re watching the developments in AI closely,” Hassett said. “However, at this time, I do not foresee the growing warnings about AI risks translating into market turbulence.” He emphasized that the technology, while advancing quickly, has not yet reached a point where it could destabilize the financial system.
The adviser also noted that the administration is considering a range of policy measures to address potential AI risks. “We are looking at additional safeguards to ensure that AI’s rapid development does not outpace the regulatory and oversight frameworks that keep our economy stable,” Hassett said.
The statement comes amid increasing public and academic concern about AI’s impact on everything from employment to privacy, and on the potential for algorithmic systems to amplify market risks. While the administration has not yet announced specific regulatory proposals, officials say they are evaluating options that could include new guidelines for AI use in financial services, expanded oversight of automated trading systems, and broader cooperation with international partners.
Financial analysts said the adviser’s remarks signal a pragmatic approach. “Markets have always responded to risk narratives, but the evidence so far suggests AI is not yet a systemic threat,” said Maria Lopez, a senior analyst at Capital Insight. “The administration’s willingness to consider safeguards could reassure investors.”
As AI technologies continue to evolve, the Trump administration’s stance on regulation will likely influence how firms and regulators address emerging challenges. The policy agenda is still in development, and officials have said no final decisions have been made.
The White House has not yet issued a formal policy proposal on AI. For now, the administration’s cautious stance—acknowledging risks but not anticipating market disruption—offers a balanced view of the technology’s trajectory.
