Forex
Fed Governor Cook Warns AI-Driven Inflation Looms Large
US Federal Reserve Governor Lisa Cook has identified artificial intelligence (AI) as one of the top risks for 2027. Speaking at an event, she expressed concerns about AI's potential to create inflationary pressures that may not be easily resolved.
Cook pointed out that inflation has been above the Fed's goal of 2% for more than five and a half years, with the latest figure standing at 3.4% in August.
She noted that AI is expected to boost productivity in the long term, but worries about when the productivity gains will translate into disinflation and where future supply bottlenecks may occur.