San Francisco Fed’s Daly: Tech Boom Drives US Growth, AI’s Inflation Impact Mild

Daly's framing matters because it separates AI from the inflation narrative that has shaped rate expectations, while still acknowledging that price pressures persist for other reasons. Her read that AI's labor-market impact is limited cuts against the more disruptive scenarios that have circulated around the technology. For markets, the signal is that a tech-led growth story can coexist with a Fed that does not treat AI as the inflation culprit. Whether that distinction holds as AI adoption deepens is the open question, and Daly's 2027 voter status gives her view a longer shelf life than the usual commentary.