Next Big Futures – October 13, 2019 – By: Rene StottThe tech industry is facing an infrastructure challenge after a surge in data traffic, and that demand is being met by a shortage of computer hardware, servers, storage and other equipment.
That has prompted the U.S. Federal Reserve to start looking at how to stimulate the sector and create more jobs.
The Federal Reserve is also considering whether to increase borrowing costs to keep up with the growing demand, the Wall Street Journal reported on Tuesday.
The bank is already preparing to cut interest rates for the first time in nearly three years as it looks to boost economic growth and reduce unemployment.
But a major infrastructure boost might be needed to offset the effect of an unprecedented data-spike, which is causing disruptions in services and consumer spending.
The data spike is likely to last into 2018, according to analysts at Standard and Poor’s Ratings Services.
The problem will only get worse if the Federal Reserve doesn’t act quickly to boost infrastructure spending, according Mark Schatz, chief investment officer at Bank of America Merrill Lynch.
The Fed’s move to take a closer look at infrastructure is also likely to prompt other investors to look for cheaper alternatives to the U-shaped U.s. dollar.
The U.E. dollar is down about 0.5 percent this week on concerns that China’s economic slowdown could hurt the U