Fed Governor Cook Expects Continued Inflationary Pressure from AI Buildout, Higher Oil Prices, and Middle East Conflict
Federal Reserve Governor Lisa Cook stated that in the coming months, she anticipates sustained inflationary pressure stemming from the ongoing AI buildout, elevated oil prices, and supply chain disruptions linked to the conflict in the Middle East. Cook also noted that the labor market appears robust enough to withstand potential interest rate increases. She highlighted that AI investment is generating economy-wide demand pressures, cautioning against using monetary policy to combat sector-specific inflation due to the bluntness of such tools.
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