Home›Bonds & Rates›Economy›Fed Governor Lisa Cook warns AI buildout could fuel 20…

Fed Governor Lisa Cook warns AI buildout could fuel 2027 inflation

Cook said the inflation risk hinges on how quickly AI productivity gains arrive, potentially leaving demand and capacity pressures unresolved for an extended period.

Reported · Written up by our desk · Economy

Federal Reserve Governor Lisa Cook warned on October 1 that the rapid AI buildout could become a source of inflation pressure in 2027 if investment demand and supply bottlenecks persist, according to her remarks at an event at the New York Fed with New York Fed President John Williams, reported by Action Forex.

Cook said the AI buildout may create inflationary pressures that may not resolve quickly, adding that she is particularly concerned about what this means for 2027.

While Cook said AI should eventually lift productivity, she questioned how quickly those gains would show up and whether they would be able to offset near-term demand and capacity pressures driven by continued investment.

Cook also pointed to geopolitical disruptions, including the Middle East conflict, as an additional uncertainty that could threaten supply chains and reinforce the risk that inflation shocks remain persistent rather than temporary.

More like this

Sources