A Federal Reserve note highlights foreign dependence on AI equipment could deepen the U.S. current account gap by 2025.
The U.S. current account deficit may widen due to the artificial intelligence boom, according to Federal Reserve research. The note estimates 90% of high-tech equipment goods are sourced abroad, primarily from East Asia, increasing reliance on foreign suppliers.
The analysis suggests this trend could exacerbate trade imbalances, as demand for AI infrastructure grows. Previous data showed the U.S. current account deficit narrowed to $164.8 billion in Q1 2024, down from $170.6 billion in Q4 2023.
No immediate market reaction was specified in the research.