The president of the Federal Reserve Bank of San Francisco, Mary Daly, has warned that the demand for artificial intelligence could lead to a prolonged energy and chip shortage. This demand is expected to extend beyond high-end chips used in data centers, potentially impacting the supply chains for other industries like automotive. Daly expressed concern that these AI-driven price pressures could last longer than typical supply shocks, complicating the Federal Reserve's efforts to control inflation. AI
IMPACT AI's growing demand for hardware could create persistent inflation risks, challenging traditional monetary policy tools.
RANK_REASON The item is an interview with a Fed president discussing the potential economic impact of AI, rather than a direct announcement from an AI lab or a policy change.
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