Fed governor says AI may add to near-term price pressures

Federal Reserve Governor Lisa Cook said on September 28 that the rapid build-out of artificial intelligence could add to inflation pressures in the near term. She pointed to demand for energy, construction workers and equipment used by data centers.

Cook also said that if AI eventually helps businesses produce more with the same resources, productivity gains could ease some price pressure in the next few years. She stressed that the timing and size of that effect remain uncertain.

Cook said she supported the Fed’s quarter-point rate increase at its September meeting and that future decisions would depend on how the economy responds and what the data show. Her remarks describe her own view; they do not settle the committee’s next decision.