On October 7, San Francisco Fed President Mary Daly stated that the demand for chips driven by the AI boom could spread from high-end AI chips to a broader semiconductor market. Some companies have begun to secure supplies of memory chips in advance and even redesign products to reduce chip usage. She believes that the price pressures brought about by this wave of AI may not be a one-time shock, and the time required for relief could exceed the one to three years typically assumed by the Fed. Daly expressed her full support for the Fed's rate hike in September, noting that whether further action is necessary will depend on the persistence of shocks from AI, tariffs, and rising energy prices due to conflicts in the Middle East. If these factors last longer or compound, further tightening of policy may be required; however, if the shocks are only temporary, additional rate hikes may not be necessary. (Jin Shi)