On Wednesday, October 21, U.S. Treasury Secretary Bessent stated at a closed-door meeting with Wall Street elites in New York that he does not believe the AI industry has any "systemic issues" and dismissed comparisons between the current AI boom and the internet bubble.
Bessenet spoke to hundreds of financial executives and investors. The event, hosted jointly by JPMorgan Chase and the nonprofit Robin Hood, had tickets starting at $7,500 and was not open to the media.
According to three attendees who spoke to the Financial Times, Bessent said during an interview with Bridgewater CEO Nir Bar Dea: "I’m good at identifying when something is wrong in the system. I don’t see systemic issues."
Bessen also explicitly rejected the AI bubble theory. He added, "The smartest people in the world—whose 99% of their net worth is invested in these companies and who have built the most profitable enterprises globally—believe in this."
Bessent’s remarks come against the backdrop of recent market volatility. Some investors are questioning whether the rally in AI stocks has gone too far and expressing concern over the massive debt issued to finance data centers and chips.
Bessen also shared his views on the overall state of the U.S. economy, with the latter part of the conversation focusing primarily on AI. He expressed overall optimism about the benefits this cutting-edge technology could bring to the United States, but noted that data centers and AI companies have not done a good job of communicating these benefits to average Americans.
Closed-door meeting sparks transparency concerns
This event was co-hosted by JPMorgan Chase and the Robin Hood Foundation. Founded by billionaire hedge fund manager Paul Tudor Jones, Robin Hood is dedicated to fighting poverty. Ticket prices start at $7,500, with the highest sponsorship package reaching $100,000. This year marks the 14th edition of the event, which has raised nearly $72 million in total. Other featured speakers include macro investor Stanley Druckenmiller and hedge fund manager Steve Cohen.
The meeting is not open to the media. In response to the Financial Times, a Treasury spokesperson stated firmly: "Bessent has 35 years of experience in both the public and private sectors of the financial industry and is well aware of what constitutes material non-public information. Everything he said at the event has been previously disclosed publicly."
The speaker also added, "The media has become so inaccurate that he can no longer read newspapers."
Robin Hood’s Chief Communications Officer, Kevin Thompson, said the meeting has historically been a private forum not open to journalists and has previously invited numerous current and former government advisors and cabinet members.
Former Finance Minister: I have always insisted on having the media present.
This incident has raised external concerns about the transparency of the Minister of Finance’s closed-door meetings with market participants.
Former U.S. Treasury Secretary Yellen said in a media interview: "I always make sure the media is present when I speak." She noted that her background as former Chair of the Federal Reserve has made her highly aware of the risks involved in conveying sensitive information to a limited group of market participants.
The Federal Reserve requires officials to ensure that public engagement "does not provide any advantage to any for-profit individual or institution over competitors," and recommends that Federal Open Market Committee officials speak in the presence of the media.
However, there are currently no regulations restricting the Secretary of the Treasury from addressing large groups of private market participants in the absence of journalists.
Mike Davis, founder of the conservative legal nonprofit Article III Project, defended the event, stating: "This is not an investor meeting; it's a charity event. We should encourage government officials to attend such events."
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