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[New York Fed President Williams:AI Equipment supply constraints may persist for 2 years]

New York Fed President John Williams said that AI equipment supply may take 2 years to catch up with demand, potentially adding to inflationary pressures. He made the remarks in an interview with Bloomberg on Tuesday, saying that AI infrastructure buildout is pushing up the prices of chips and chip-using goods. Asked whether 2 supply and demand would come into balance over the next AI years, Williams said: “I think it will take longer. Assuming the demand impulse persists as expected, and that is a big assumption.” Williams also reiterated his view that the Federal Reserve may need to raise interest rates once more this year to bring down inflation. He said: “I have not changed my view that another rate hike may be needed.” However, regarding 2027 year, he said that “we need to see” and that “at present, I see no reason to believe we need to do more.” He also expects AI investment to remain strong even as interest rates rise, as relevant investors are relatively price-insensitive and believe that AI will deliver enormous productivity gains and economic transformation.AI Equipment supply shortages could affect Bitcoin miners entering the sector, as they need to compete for chips and power equipment.IREN On July signed a new 2800000000 USD cloud contract, while Bitcoin miners already face substantial financing needs in advancing AI projects, and lenders are becoming increasingly selective.AI