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Gregory Daco reports that Federal Reserve Bank of New York President John Williams has identified artificial intelligence-driven demand as a major factor influencing inflation in the U.S.
Williams said that if this demand remains strong, it may require the central bank to consider raising interest rates.
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The comments come as the Fed continues to focus on several key policy areas. Gregory Daco recently reported that the central bank established five task forces covering communications, its balance sheet, data, productivity, jobs, and inflation. Daco has also tracked global economic trends, noting that China recorded weaker consumer spending and investment in May, offset by growth in exports and industrial output.