FED’S DALY SAYS THE ECONOMY IS BEING DRIVEN BY A TECHNOLOGY BOOM AND THAT THERE IS NO DOUBT OF AI-FUELED PRICE PRESSURES, THOUGH AI IS CONTRIBUTING DIRECTLY ONLY A MODEST AMOUNT TO INFLATION

San Francisco Fed President Mary Daly stated that the economy is being driven by a technology boom and that AI is generating price pressures, while acknowledging that AI's direct contribution to inflation remains modest. The comment points to an indirect transmission channel: AI-related investment lifts aggregate demand for capital goods, data center construction, electricity, and skilled labor, which can tighten resource markets and push up input costs even when consumer-facing AI spending is small. For rates markets, this distinction matters because it suggests the Fed may view AI-linked demand as a source of sustained inflation persistence rather than a transitory one, which would weigh on the front end of the Treasury curve and reduce the scope for near-term rate cuts. Equity exposure is concentrated in semiconductor, hyperscale cloud, and power-utility names, where earnings expectations are most tied to the capex cycle, while rate-sensitive small caps and long-duration growth stocks face valuation pressure if yields rise. Traders should watch the next Personal Consumption Expenditures price index release and the Fed's updated Summary of Economic Projections for signs of whethe

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

Active traders typically follow a three-step workflow when a market-moving headline hits the wire: (1) read the headline on the terminal or hear it on the squawk box; (2) assess whether the news is already priced in (by checking intraday price action in the seconds before) or whether it's genuinely new information; (3) act — either entering a breakout position, fading an overreaction, or tightening stops on existing trades. Trading News Terminal's Pro plan delivers wire-grade headlines within seconds of the source, with automatic audio squawk on every HIGH-impact event, so the read-assess-act cycle never waits on a refresh button.