SAN FRANCISCO Federal Reserve Bank of San Francisco President Mary C. Daly said artificial intelligence is not the primary driver of current U.S. inflation, though it could pose a risk to prices in the future.
Daly, a voting member of the Federal Open Market Committee, did not provide verbatim quotes in available sources, but her remarks underscore a split view within the Fed: inflation remains above the central bank's 2 percent target, yet the consensus on AI's near-term role is muted.
Daly also said AI has had limited impact on employment so far, even as businesses across sectors accelerate adoption. Her assessment clashes with some economists' concerns that the technology could displace jobs or suppress wage growth.
The San Francisco Fed President noted a deep AI pipeline continues despite slower recent development, suggesting the technology's economic effects are still unfolding.
Inflation remains elevated. The Fed has held rates steady as officials debate whether price pressures have sufficiently cooled to justify cuts.
