Mary Daly: AI Chip Squeeze Could Extend Energy Shock — SkimNews
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- Mary Daly, president of the Federal Reserve Bank of San Francisco, told Axios that some companies are preparing for an AI-fueled chip squeeze that could push prices up far beyond the data center boom alone.
- Daly warned the AI-driven chip squeeze could extend an energy shock — a type of supply disruption the Fed can usually look through only when it passes quickly.
Why it matters: Daly's concern matters because the Fed typically dismisses supply-side disruptions only when they prove transient, and an AI-fueled chip shortage that prolongs an energy shock would not fit that pattern — complicating the inflation picture the central bank monitors.
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