Fed Warns of New Inflation Pressures Amid Rising Oil Prices and AI Demand

The US Federal Reserve has warned of new inflationary pressures and left the door open to further interest rate hikes. Fed Governor Lisa Cook pointed out that price pressures may persist due to rising oil prices and increased demand related to artificial intelligence.

Cook noted that while the labor market remains relatively solid, there are still factors that could hinder a return of inflation to the central bank's 2% target.

The Fed raised interest rates for the first time since 2023 just two weeks ago, and officials have slightly increased their inflation estimate. The median forecast now places growth of the PCE index at 3.7% in 2026, compared to 3.6% expected in June.