President of the New York Fed expresses particular concern about the impact of artificial intelligence demand on inflation.

John Williams, President of the New York Federal Reserve, stated that among the many factors driving inflation in the United States, he is most concerned about the demand driven by artificial intelligence. If this demand continues to exist, it may force the Federal Reserve to raise interest rates. "If this, in terms of inflation, brings sustained momentum to demand relative to supply, I do think this is not something to be ignored," Williams said at an event held by the New York Federal Reserve on Thursday. If inflation ultimately proves to be more stubborn and significantly higher than his baseline forecast, he said, "then monetary policy will need to respond." He added, "On the other hand, if the situation is not like that and the changes are more moderate, I do believe that monetary policy is now and will continue to be in a favorable position."