Fed's Williams Warns AI Equipment Supply Shortage Will Persist Beyond 2028

New York Federal Reserve President John Williams has warned that the global shortage of AI equipment and semiconductor capacity will extend well beyond the two-year horizon, potentially sustaining inflationary pressures as the artificial intelligence boom drives unprecedented demand for advanced chips. When asked whether supply and demand within AI infrastructure would rebalance within two years, Williams stated that the resolution "is going to take longer," assuming demand impulses continue as expected.