Feds Cook sees AI inflationary push as a top 2027 risk

Oct 1 (Reuters) – Federal Reserve Governor Lisa Cook said on Thursday that she sees AI, and its inflationary push, as a top risk for 2027, and noted that increasingly frequent supply shocks have had surprisingly persistent effects and become more salient for policy.

“The AI build out is potentially creating inflationary pressures that may not resolve very quickly,” Cook told New York Fed President John Williams at an event at the regional Fed bank. “So I think this is one of the main things that concerns me right now for 2027.”