Cook warns AI infrastructure could add to 2027 inflation

Federal Reserve Governor Lisa Cook said artificial intelligence infrastructure construction could add to inflationary pressures that may take time to ease, identifying the issue as a major concern for 2027. Her remarks came as she also reiterated that inflation has been too high for too long and that she is committed to bringing it back to the Federal Reserve’s objective while preserving labor-market strength. At a New York Fed event on Thursday, October 1, Cook told New York Fed President John Williams that the AI buildout could create price pressures that do not resolve quickly. She said she was concerned about when productivity gains from AI would arrive and where supply bottlenecks might emerge. Cook acknowledged that AI could raise productivity over time, but said the timing of those gains matters if investment demand drives costs higher first. The remarks identify a risk, rather than quantify AI’s effect on economy-wide inflation. The available information does not establish how much infrastructure investment has contributed to broad price increases, or how long any effects may persist.