Fed policymakers divided over rate-hike logic in September, minutes show
Federal Reserve policymakers were divided last month over the rationale for raising interest rates, with "some participants" seeing a hike as needed to keep the impact of energy and other price shocks at bay, but a more hawkish core viewing it as necessary to guard against e...
Fed’s Daly: More tightening depends on whether AI, tariff and energy shocks persist
San Francisco Fed president Mary Daly, speaking to Axios, outlined how overlapping inflation risks will shape her outlook for further rate hikes: AI-related supply pressures could last beyond the one-to-three-year period over which the Fed typically expects shocks to fade. Some businesses are securing future memory-chip supplies and redesigning products to reduce their reliance on chips. AI demand could compete for chips used in cars, appliances and other goods, spreading price pressures beyond data centers. Increasing reliance on borrowing could make those large technology companies more sensitive to financing costs. Believes tighter policy can restrain inflation even if the biggest AI spenders are relatively insensitive to interest rates. Supported September’s rate hike because inflation risks had increased. Further tightening may be unnecessary if tariffs, higher oil prices and AI-rel
