AI rally faces credit risks, markets underplay Fed impact: William Lee

William Lee, Chief Economist and Managing Director at Global Economic Advisors, warned that the AI investment boom is increasingly dependent on opaque private credit, creating risks that markets may be underestimating. He also expects only one more US Fed rate hike this year, saying core disinflation should strengthen by December, while geopolitical tensions between the US and China are unlikely to see a meaningful breakthrough.