Freya Beamish, Chief Economist at TS Lombard, urged the Federal Reserve to tighten policy to curb the artificial intelligence (AI) boom sweeping the US. In a Bloomberg Television interview on July 14, Beamish said officials should act against a build‑up of leverage linked to technology, noting that the economy remains resilient enough to absorb tighter monetary conditions.

Beamish emphasized that the AI surge has led to significant increases in borrowing and risk‑taking across the tech sector, creating potential vulnerabilities for the broader financial system. She also pointed out the Fed’s past successes in managing inflation while supporting growth, suggesting a balanced approach is possible.

The commentary comes amid growing concerns that unchecked AI expansion could amplify systemic risks, especially as U.S. businesses continue to invest heavily in machine learning, automation, and data analytics. TS Lombard’s analysis will likely influence policymakers and investors as they assess the right timing and extent of policy tightening.