November 13 news — San Francisco Fed President Daly said on Thursday that further monetary policy tightening may be necessary to bring inflation down, as inflationary pressures remain persistent and are not confined solely to industries directly affected by tariffs or oil prices. She noted that a growing number of businesses have told her they plan to pass higher input costs on to consumers, showing an increased willingness to raise prices. Daly supported the Fed's decisions to raise rates in September and to hold rates steady in October. Speaking about AI, she said that AI infrastructure construction has indeed pushed up some prices, but its impact on overall inflation remains modest — the cost increases have been limited and have not spread to other areas. Current overall inflation is mainly driven by other factors rather than AI-related goods, she said. She remains optimistic that AI will boost productivity growth over the long run, but judges that it is still too early to tell when that will materialize. Daly is not a voting member of this year's FOMC.