US Fed’s Cook sees AI inflationary push as a top 2027 risk
Inflation has been above the Federal Reserve’s goal of 2% for more than 5 and a half years
Federal Reserve Governor Lisa Cook has warned that artificial intelligence (AI) and its inflationary impact pose a significant risk for 2027. Speaking at an event in New York, Cook said that the ongoing AI build-out is generating inflationary pressures that may not dissipate quickly. She emphasized that frequent supply shocks have had persistent effects, making them more salient for policymakers.
Inflation, as measured by the Fed's target, has remained above 2% for over 5.5 years. Cook acknowledged that AI could boost productivity in the long run, but expressed concern about when these productivity gains would materialize and which supply bottlenecks would emerge next. Geopolitical factors, such as the Middle East conflict, could also disrupt supply chains.
Cook suggested that the optimal response to supply shocks might differ based on the affected sectors.
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- Fed's Cook sees AI inflationary push as a top 2027 risk channelnewsasia.com
