Fed's Daly Says AI Is Not Driving Inflation as Tariffs and Iran War Lift Prices
Updated
Updated · Reuters · Jun 4
Fed's Daly Says AI Is Not Driving Inflation as Tariffs and Iran War Lift Prices
3 articles · Updated · Reuters · Jun 4
Summary
Mary Daly said AI is neither pushing inflation up nor pulling it down now, making it no immediate concern for monetary policy.
A 12-month policy horizon leaves little reason for the Fed to react, she said, even though AI could become a deflationary force over the next five to 10 years.
Higher tariffs are driving the current inflation rise, Daly said, with energy and food prices also climbing since the start of the Iran war.
At the same Bloomberg Tech event, Daly said AI's economic payoff is still hard to see in the data, with the coming year likely to test whether heavy investment turns into measurable productivity gains.