Carol Massar reported that Mary Daly, president of the San Francisco Fed, stated there is currently no clear evidence of productivity gains from AI in the economic data.

Mary Daly, president of the San Francisco Fed, stated there is currently no clear evidence of AI-driven productivity gains in the economic data.

San Francisco Fed President Mary Daly does not currently see financial stability concerns arising from the AI-driven market rally, as there is no evidence of it spreading to banks, consumers, or busin...

San Francisco Fed President Mary Daly states that widespread productivity gains from AI have not yet appeared in economic data, but she is seeing tremendous investment in the technology.

San Francisco Fed President Mary Daly stated there is no indication that the recent surge in energy prices is driving inflation expectations higher.

Mary Daly believes that providing strict, precise forward guidance on monetary policy creates a "false precision" in an uncertain economic environment.

Mary Daly asserts that current levels of wage inflation are consistent with achieving the Federal Reserve's 2% inflation target.

Mary Daly states there is not significant data evidence to suggest that medium or long-run inflation expectations have become unanchored from the 2% target.

Based on her discussions within the 12th district, Mary Daly finds that most producers and sellers do not feel they have the pricing power to pass on cost increases to consumers.

Mary Daly believes that the rise in short-term inflation expectations does not signify a de-anchoring of medium or long-term inflation expectations.

Mary Daly states that the U.S. labor market is currently stable and is not contributing to inflationary pressures.

Mary Daly assesses the current Federal Reserve monetary policy stance as "slightly restrictive," which is exerting downward pressure on inflation.

Mary Daly stated that she looks forward to Kevin Warsh joining and chairing the Federal Open Market Committee (FOMC) upon his confirmation.

Mary Daly believes the public, including businesses and consumers, understands that the Federal Reserve's top priority is price stability.

San Francisco Fed President Mary Daly expects inflation to return to the Federal Reserve's 2% target.

San Francisco Fed President Mary Daly believes the most likely policy path for the Federal Reserve is to hold interest rates steady.

San Francisco Fed President Mary Daly observed that lower-income consumers are cutting back on spending, including on cheaper proteins like chicken, due to high gasoline prices.

The inflationary impact of the data center buildout is a timing issue; it may cause short-term price pressures, but the resulting infrastructure could eventually lower costs.

Businesses are being patient and cautious with hiring to avoid overhiring before they fully understand which skills can be replaced or augmented by AI.

Businesses have indicated to the San Francisco Fed that the next year will be a litmus test for seeing transformative, ongoing productivity gains from AI.