Mary Daly, president of the Federal Reserve Bank of San Francisco, said AI-related shortages could help fuel inflation for longer, potentially requiring further tightening from the central bank.
Speaking to Axios, Daly said constraints could spread from the industry and into the wider economy for longer than the 1-3 year period the Fed would expect for regular shocks. Her conversations with companies from Silicon Valley that delve in other fields but also experience the shortages are helping inform her assessment.
