Federal Reserve's Cook: AI Demand and Rising Oil Prices Will Continue to Push Up Inflationary Pressures
5 day ago / Read about 0 minute
Author:小编   

On September 29, Federal Reserve Governor Lisa Cook pointed out that U.S. inflation will continue to face pressure in the coming months, primarily driven by growing demand for artificial intelligence, rising oil prices, and supply chain fluctuations triggered by Middle East conflicts. However, she did not explicitly indicate the need for further interest rate hikes. Cook believes that the current labor market can withstand rising interest rates, and future monetary policy adjustments will depend on economic reactions as well as inflation and employment data. Data shows that as of August, the overall 12-month inflation rate in the U.S. was approximately 3.8%, still higher than the Federal Reserve's 2% target. Cook analyzed that demand driven by AI infrastructure construction will continue to push up inflation in the short term. Although the productivity gains from AI may bring some deflationary effects in the medium term, they will not be sufficient to offset current inflationary pressures this year. She stated that there is currently no clear evidence that AI is reshaping the labor market, but the Federal Reserve is closely monitoring the potential risk of rising unemployment it may trigger. Cook also warned that if the job market is impacted by AI in the future, the Federal Reserve will have limited room to respond, as interest rate cuts to support employment could further exacerbate inflation.