New York Fed President Williams stated in an in-depth interview with Bloomberg that despite the AI infrastructure boom and energy shocks posing new inflationary variables in the short term, the U.S. economy is not overheating across the board. He reiterated the view that there might be one more rate hike this year and expects no further hikes will be needed until 2027. Williams also pointed out that due to fiscal policy and strong economic growth, the neutral rate has moderately increased by 25-50 basis points but remains at 1% or slightly above that level in the long term. He believes AI has pushed up costs for data centers and chips in the short term but will be a disinflationary force in the long run, and he firmly defended the Federal Reserve's decision to raise rates in September, citing unexpected fluctuations in energy prices and widening refining margins as core reasons.