Fed's Cook says the AI buildout is adding to inflation pressure
Fed Governor Lisa Cook said on September 28 that AI appears to be adding inflationary pressures to the economy, postponing inflation's return to the Fed's 2 percent target. She said data-center investment relies on construction labor and energy used across the economy, and that companies have only spent a small fraction of the $2 trillion in announced plans.
NoteCook voted for the 25 basis point rise in September and expects continued pressure on inflation from the AI buildout in coming months, which ties the AI investment wave directly to what banks and their borrowers pay for credit.
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