Fed Falls Behind as AI Boom Grips US: TS Lombard Warns of Global Supply Chain Risks

As the artificial intelligence sector booms in the US, the Federal Reserve has yet to tighten policy to constrain the surge. TS Lombard Chief Economist Freya Beamish warned that the delay could expose the US economy to potential risks. The AI boom is increasing energy demand, driving up oil prices, which could strain global supply chains. Latest data from the Baltic Dry Index (BDI) shows tanker traffic has risen by 12% in the Suez Canal and 8% in the Panama Canal, signaling a potential shock in commodity supply. The Fed's hesitation may prevent markets from fully assessing the impacts of the AI sector's growth.