Fed's Cook calls AI buildout a top inflation risk for 2027

Federal Reserve Governor Lisa Cook said the AI buildout is creating inflationary pressures that may not resolve quickly and flagged it as a top risk for 2027. She expects AI to lift productivity long term but is unsure when disinflation will arrive; inflation was 3.4% in August, above the 2% goal for over 5.5 years.

• Cook: AI buildout may create persistent inflationary pressure
• US inflation hit 3.4% in August, above 2% target for 5.5+ years
• Fed unanimously raised the policy rate by 0.25 point in September
• Cook expects AI productivity gains but questions their timing