Daly's remarks signal a hawkish stance on the duration of inflation risks and the potential for additional rate hikes. While she noted that the Federal Reserve may see these specific economic shocks diminish within one to three years, the current volatility may prevent the central bank from easing policy as quickly as markets expect.
Wednesday, October 21, 2026
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Fed's Daly Warns AI and Tariffs May Force More Tightening
US Markets15 days ago
Monetary policy in the US could remain restrictive for longer than anticipated if price pressures persist. San Francisco Fed President Mary Daly told Axios that risks from artificial intelligence, tariffs, and energy costs are keeping inflation elevated and may require further tightening of the federal funds rate, with demand for AI technology specifically risking an extension of energy shocks.
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