President of the Federal Reserve Bank of New York, John Williams, stated that the shortage of artificial intelligence (AI) equipment supply could last more than two years. According to him, this may lead to additional inflationary pressure. Williams made his comments during an interview with Bloomberg on Tuesday, noting that the growth of AI infrastructure is driving up prices for chips and goods that use them.
In response to a question about whether AI supply and demand will become more balanced over the next two years, Williams noted: "I think it will take longer. Assuming demand remains at expected levels, which is a big assumption." He also confirmed that the Federal Reserve might need another interest rate hike this year to combat inflation. However, he added: "I don't think at this time I have grounds to believe we need to do more."
Despite possible rate hikes, Williams expects investments in AI to remain high. "I think investors in this area are relatively insensitive to prices," – he said. These words underscore confidence that AI will lead to significant changes in the economy. At the same time, the equipment shortage may affect Bitcoin miners seeking to expand in this sector, as they face competition for chips and energy equipment. For example, the company IREN signed contracts for AI cloud solutions worth $2.8 billion in July.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
Related articles
