NY Fed President Williams says AI equipment supply squeeze will last over two years

New York Fed President John Williams stated that AI equipment supply could take more than two years to meet demand, which may contribute to inflationary pressure. Williams made these comments in an interview with Bloomberg on Tuesday, while also reaffirming his view that the US Federal Reserve might need another interest rate hike this year to lower inflation, though he does not expect further hikes after 2027. He also noted that AI investment is expected to remain strong despite higher rates, as investors see huge productivity and transformative economic gains.