San Francisco Federal Reserve President Mary Daly said on Thursday that U.S. monetary policy remains slightly restrictive, but the strength of artificial intelligence-driven investment and a resilient labor market have made the outlook for interest rates increasingly uncertain, according to Reuters.
Speaking at a Banco de España conference in Santander, Spain, Daly said policymakers are weighing multiple possible paths for the economy. She noted that inflation could prove more persistent than expected, requiring the Federal Reserve to maintain a tighter policy stance. At the same time, she said economic growth could weaken if investment slows or businesses fail to realize the expected productivity gains from AI, as per a report by Reuters.
