White House Dismisses AI Risk Report as 'Science Fiction,' Boosting Nasdaq 1%

Edgen Stock·Feb 24 2026, 21:41

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Key Takeaways

A top White House economic advisor publicly dismissed a bearish Citrini Research report on AI as "science fiction," calming market fears and sparking a rebound in technology stocks. The official rebuttal underscores the administration's aggressive, pro-growth stance on AI development.

Official Rebuttal: White House economic advisor Pierre Yared called the Citrini report, which warned of an AI-driven economic collapse by 2028, "an interesting piece of science fiction" that violates basic economic principles.
Market Reverses: After falling over 1% on Monday due to the report, the Nasdaq Composite recovered 1.04% on Tuesday following the White House's comments.
Pro-Growth Policy: The administration signaled an "all in" strategy for AI, emphasizing deregulation to ensure U.S. leadership and comparing the current boom to the job-creating internet revolution of the 1990s.

Yared's 'Science Fiction' Rebuke Lifts Nasdaq by 1.04%

A top White House economic advisor publicly refuted a bearish report on artificial intelligence risks that had unsettled technology investors. On Tuesday, February 24, Pierre Yared, acting chairman of the White House Council of Economic Advisers, characterized the analysis from Citrini Research as "an interesting piece of science fiction." His comments came after the Nasdaq Composite index fell more than 1% on Monday, driven by the report's claims.

The Citrini Research report projected a scenario for 2028 where rapid AI advancements lead to mass unemployment and a collapse in consumer spending, dragging down major stock indices. Speaking after a National Association for Business Economics (NABE) conference in Washington, Yared dismissed these concerns, stating he focuses on "research results" over "doomsday scenarios." The market responded swiftly to the official rebuttal, with the Nasdaq closing up 1.04% on Tuesday and erasing the previous day's losses.

It's an interesting piece of science fiction—and I like science fiction. But I think if you go under the hood and think about it, it violates some basic principles of economics.

— Pierre Yared, Acting Chairman, White House Council of Economic Advisers

Administration Signals 'All In' Strategy for AI Dominance

Yared's comments reinforce the Trump administration's broader policy of aggressively promoting AI development to secure U.S. leadership. The administration has already repealed policies from the previous administration that set safety and transparency requirements for AI developers, signaling a strong deregulatory preference. "We certainly don't want to get in the way of what could be one of the most incredible technological developments of our time because of government overregulation," Yared stated.

This pro-growth perspective is echoed by other senior officials, including Treasury Secretary Biesenthal. He has repeatedly compared the current AI investment cycle to the internet and personal computer revolution of the 1990s, a period marked by strong growth and low unemployment. This view directly counters the Citrini report's fears of job destruction, suggesting the administration anticipates that increased investment in AI will create, rather than eliminate, jobs. Yared confirmed that extensive internal discussions are underway to balance this technological leap with employment stability.