OECD Warns AI Stock Bubble Could Hit U.S. Economy

The Organization for Economic Co-operation and Development (OECD) warned Tuesday that the United States faces slowing growth, rising inflation and a weakening labor market in 2026, with an added threat from what it calls a potential AI-driven stock market bubble.

AI bubble a "key downside risk" to U.S. economy, report warns https://t.co/axgZzANrHU

— Axios (@axios) December 2, 2025

In its latest semiannual outlook, the organization said markets have been “buoyed by the hopes of high returns to investment in AI,” and cautioned that a correction is a major downside risk.

The OECD projects U.S. growth will slip from 2% in 2025 to 1.7% in 2026 before edging up to 1.9% in 2027. It cited tariff-driven price pressures and soft employment gains, saying deeper rate cuts “appear warranted” as inflation is expected to rise to 3% next year.

🌍 OECD upgrades growth forecasts, crediting AI investments despite tariff impacts. But beware—trade tensions could still pose risks ahead! #GlobalEconomy #AI #Tariffs #OECD 🌟https://t.co/sEJpfGVNFy

— Global Banking & Finance Review (@GBAFReview) December 2, 2025

Globally, the group sees weaker economic activity in 2026 due to political uncertainty and sluggish trade, with a rebound expected in 2027 as Asian demand strengthens.

The OECD also warned that stretched valuations could make markets vulnerable to sharp repricing.

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