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BlackRock Warns AI-Driven Debt Surge May Elevate U.S. Borrowing Costs

BlackRock Warns AI-Driven Debt Surge May Elevate U.S. Borrowing Costs

Author:

Global Cryptocurrency

Published:

2025-12-03 11:41:01

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BTCCSquare news:

BlackRock's research division has turned bearish on U.S. bonds, citing the AI boom as a catalyst for rising borrowing costs. Tech firms are poised to issue hundreds of billions in new debt to fund AI projects, compounding the federal government's $38 trillion debt burden.

The firm warns this leverage could strain financial stability, noting 'a structurally higher cost of capital raises the cost of AI-related investment and affects the broader economy.' Bond yield spikes from fiscal concerns or inflation-debt policy tensions now pose systemic risks.

Despite debt concerns, BlackRock remains bullish on U.S. equities. AI-driven revenue growth is expected to buoy stock prices through 2025, though the economic benefits may not be evenly distributed across sectors.

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