*FED'S DALY SEES LINGERING INFLATION RISKS FROM AI, TARIFFS AND ENERGY COSTS: AXIOS*DALY: AI CHIP DEMAND SPREADING BEYON | Hanami
*FED'S DALY SEES LINGERING INFLATION RISKS FROM AI, TARIFFS AND ENERGY COSTS: AXIOS *DALY: AI CHIP DEMAND SPREADING BEYOND DATA CENTERS, LIKELY LASTING BEYOND 3 YEARS: AXIOS
- San Francisco Federal Reserve President Mary Daly told Axios that AI demand, tariffs and higher energy costs could linger longer than expected or compound, keeping inflation elevated and potentially requiring more tightening. - Daly said AI chip demand could spread beyond data centers before supply catches up, extending the shock beyond the Fed's typical one-to-three-year horizon. - She noted companies are seeking forward memory chip contracts and reengineering products to rely less on chips, signaling broader concerns about tightening supplies. - Daly affirmed her support for the Fed's September interest rate hike, stating further actions depend on whether shocks prove temporary or compound.