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Federal Reserve Identifies Inflation Drivers

Federal Reserve Identifies Inflation Drivers

The President of the Federal Reserve Bank of San Francisco, Mary Daly, stated that artificial intelligence is not currently contributing to increases or decreases in inflation. She added that it may become a deflationary factor in the long term over the next 5 to 10 years, but it is not related to the usual monetary policy horizon, which typically extends to 12 months. She indicated that the current inflationary pressures are mainly due to rising tariffs, energy prices, and food costs since the start of the Iranian war, with Federal Reserve officials focusing on the factors that have the most impact on inflation in the short and medium term.

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