Home›Forex›Central Banks›Fed Governor Lisa Cook flags AI and Iran risks to infl…

Fed Governor Lisa Cook flags AI and Iran risks to inflation

Cook said the path for any future Fed funds rate adjustments will depend on incoming inflation and labor market data.

Reported · Written up by our desk · Central Banks

Federal Reserve Governor Lisa Cook said the number and magnitude of any future adjustments to the Fed funds rate will be determined by inflation and labor market data, in remarks delivered in Oakland, California, according to FXStreet.

Cook added that she expects continued inflation pressures to build from artificial intelligence impacts and the US-Iran conflict, while noting that she is highly attentive to the risk that AI could temporarily raise unemployment.

She said the Fed has limited tools if AI were to change labor market structure, and she warned that lowering rates could fuel inflation.

Cook also said she expects AI adoption to minimize net job losses and that the gains she expects may not offset broadening inflation pressures this year, based on signs of broader inflation in incoming data.

More like this

Sources