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Fed credit backstop remains in play as AI build-out expands

BofA Global says the Federal Reserve’s pandemic-era corporate credit facilities can help limit downside risks even as AI-driven growth spreads through markets and the economy.

Reported · Written up by our desk · Fund Industry

MarketWatch highlights that the Federal Reserve’s pandemic corporate credit facilities are designed to cap downside risks, and BofA Global says they remain part of the Fed’s tool kit.

The outlet frames the AI build-out of recent years as increasingly broad-based, reaching nearly everything in the United States, including the stock market, rising utility bills, and higher U.S. Treasury yields.

Against that backdrop, the article suggests “too big to fail” dynamics may be relevant beyond banks, given how connected the economy has become to the AI spending and financing cycle.

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