Fed’s Cook Says AI Demand ‘Broadening’ to Increase Inflation
Cook said AI-related demand and higher oil prices will keep inflation elevated, noting total inflation was 3.8% over the 12 months through August.
- In Oakland, California, Federal Reserve Governor Lisa Cook said on Monday she expects continued inflationary pressure in coming months from AI-related demand and higher oil prices.
- Rising global energy prices during the seven-month US-Israeli war with Iran have pushed inflation above the 2% target for more than five years, according to The Fed.
- Total inflation reached about 3.8% in the 12 months through August, which Cook described as "too high for too long," and data shows effects are broadening beyond AI-focused sectors.
- Financial markets now price in about a 75% chance of a rate hike next month, following The Fed's decision this month to restore the 2% inflation goal in a "timelier" fashion.
- While AI-driven productivity gains may deliver some disinflation over the medium term, Cook remains "highly attentive" to potential unemployment risks, noting future policy adjustments will depend on economic observations in coming months.
15 Articles
15 Articles
(Seoul = Yonhap News) Reporter Seol Won-tae = U.S. Federal Reserve Governor Lisa Cook stated that due to demand related to artificial intelligence (AI) and rising oil prices, in the coming months...
Fed’s Cook says AI demand ‘broadening’ to increase inflation
Federal Reserve board of governors member Lisa Cook said Monday that rising demand for artificial intelligence is leading to “broadening” inflationary impacts, with implications for the entire economy. During a keynote speech at the Oakland Tech Week conference, Cook noted that prices for Al-related goods, including chips, computers and software, have “surged” in the past…
Fed’s Cook Says AI Gains Won’t Offset Near-Term Inflation
Federal Reserve Governor Lisa Cook said future productivity gains from artificial intelligence may not be enough to offset near-term price pressures, warning this trend could drive up inflation across the economy.
The director of the Federal Reserve (Fed, the central bank of the United States) Lisa Cook predicts that, in the coming months, investments in artificial intelligence and the transfer of the highest oil prices, due to the war in Iran, will continue to press American inflation. Lisa, who voted in favour of the last high in interest rates, has not committed herself to a specific trajectory and has stated that new movements in monetary policy will …
Fed Governor Lisa Cook warned that the productivity gains expected from artificial intelligence will not be enough to offset the upward pressure on prices expected in the near future, so inflationary effects may continue to ripple through the economy in the second half of this year, Bloomberg reports.
Fed's Cook sees further inflationary pressures ahead
Federal Reserve Governor Lisa Cook said on Monday she expects continued inflationary pressure in coming months stemming from AI-related demand and higher oil prices, though she stopped short of saying more interest rate hikes will be needed.
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