Stories
Fed's Lisa Cook Warns AI Poses Top Inflationary Risk by 2027
C
CNBC TV18•02-10-2026, 12:47
Fed's Lisa Cook Warns AI Poses Top Inflationary Risk by 2027
- •Federal Reserve Governor Lisa Cook identifies AI's inflationary push as a primary risk for 2027, citing potential for persistent price pressures.
- •Cook expressed concerns about the timing of AI's productivity gains that could lead to disinflation and potential future supply bottlenecks.
- •She noted that frequent supply shocks have had surprisingly persistent effects, making them more salient for policy decisions.
- •Cook's remarks come after the Fed's unanimous vote to raise policy rates to bring inflation, currently at 3.4%, back to its 2% target.
- •Geopolitical factors, including the Middle East conflict, are also considered potential disruptors to supply chains.
Key Questions Answered
Federal Reserve Governor Lisa Cook warned that the massive infrastructure build-out for artificial intelligence is potentially creating inflationary pressures that may not resolve very quickly, making it a top concern for 2027.
Lisa Cook believes that over the long term, artificial intelligence will boost productivity, though she worries about the timing of those disinflationary gains and potential upcoming supply bottlenecks.
The Federal Reserve voted unanimously to raise the policy rate by a quarter of a point to support a timelier return of inflation to the Fed's 2% goal, after inflation reached 3.4% in August.
