Inflation Pressures Persist for Months Amid AI-Driven Demand

Federal Reserve Governor Lisa Cook warned that inflation pressures will persist for several months due to AI-related demand and rising oil prices.

Cook, speaking at an AI and emerging technology conference in Oakland, California, said the labor market appears to be in a good position to withstand further interest rate increases.

She noted that inflation had remained too high for too long, with a 12-month run of about 3.8 percent, roughly double the Fed's 2 percent target.

Cook said inflation pressures will continue due to the spread of AI and the pass-through of higher oil prices and supply chain disruptions stemming from the Middle East conflict.