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Fed's Daly Warns AI Chip Squeeze Could Keep Inflation Elevated

San Francisco Federal Reserve President Mary Daly warned that the shortage of AI-related semiconductors could keep inflation elevated, as surging demand for chips pushes up technology costs and construres supply across the economy. Her comments add a new angle to the inflation debate, linking the AI investment boom directly to price pressures the Fed is trying to contain.

Why now: Investors and policymakers are weighing whether the AI chip shortage adds fresh inflationary pressure that could influence Fed rate decisions.

Federal ReserveMary DalyAI chipmakerssemiconductor industry

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