Fed's Daly says AI is not for now driving inflation up or down

San Francisco Federal Reserve President Mary Daly on Thursday said that while she believes AI over a five- to 10-year window could be a deflationary force, the effect is "not a pressing issue" for monetary policy which operates on a 12-month horizon.

Daly, at a Bloomberg Tech event in San Francisco, also said she also does not think that AI is behind the current rise in inflation, which being driven by higher tariffs and, more recently, by higher energy and food prices since the start of Iran war.

(Reporting by Ann Saphir, Editing by Franklin Paul)

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This story was originally published June 4, 2026 at 10:47 AM.