Economic Buzz: Rising demand for artificial intelligence is leading to broadening inflationary impacts, says Fed's Cook

Federal Reserve board of governors member Lisa Cook said Monday that rising demand for artificial intelligence is leading to broadening inflationary impacts, with implications for the entire economy. During a keynote speech at the Oakland Tech Week conference, Cook noted that prices for Al-related goods, including chips, computers and software, have surged in the past year. I believe that some of these steep price increases reflect a shift in demand toward AI-related sectors rather than an increase in economy-wide demand, she noted, adding that supply chains will adjust and resolve the resulting price pressures without policy intervention.

Powered by Commodity Insights