Fed's Daly Says AI Affects Near- and Medium-Term Monetary Policy and Economy

Federal Reserve Bank of San Francisco President Mary Daly stated that artificial intelligence is poised to fundamentally change the economy and directly influences monetary policy across near- and medium-term horizons. Speaking at the 2026 Economic Research Symposium, Daly emphasized that AI developments directly affect the central bank's dual mandate of price stability and maximum employment. Her comments follow observations from Richmond Fed President Thomas Barkin, who noted that heavy AI investment is driving aggregate demand and supply-chain pressures. To evaluate these structural shifts empirically, the San Francisco Fed is establishing the Technology and Growth Center.