Fed’s Daly warns AI could fuel inflation pressures

San Francisco Fed President Mary Daly warned that artificial intelligence could add to inflation pressures, potentially complicating the central bank’s path toward easier monetary policy. The concern centers on AI-driven demand for energy, data centers and skilled labor, which could keep price growth elevated even as other inflation sources cool. For crypto markets, the warning matters because digital assets have traded closely with expectations for Federal Reserve rate cuts, and any hint of tighter policy tends to weigh on risk appetite. Traders will watch upcoming inflation data and Fed commentary for signs that AI-related investment is feeding into broader price measures, which could delay the rate cuts that have underpinned crypto valuations.