Cook Sees Ongoing Inflation Pressures from AI and Oil Prices

Federal Reserve Governor Lisa Cook expects continued inflationary pressure due to AI-related demand and higher oil prices. She stopped short of endorsing another interest rate hike, saying future moves will depend on inflation, labor-market data, and the economy's response to previous Fed actions.

Cook sees little evidence that AI is fundamentally restructuring the labor market, although she is watching for the possibility of a temporary rise in unemployment.

Oil prices climbed about 2% after US President Donald Trump rejected a deal from Iran to reopen the Strait of Hormuz. Financial markets are now pricing in about a 75% chance of a Fed rate hike next month and a strong probability of a third straight increase at the meeting in December.