Federal Reserve Governor Lisa Cook warned on Monday that the artificial intelligence buildout will keep pressure on inflation in the coming months. Speaking in Oakland on 28 September 2026, Cook said total inflation stood at 3.8 per cent in the 12 months through August, describing it as too high for too long.

She expects continued price pressure from AI-related investment, the pass-through of higher oil prices and supply-chain disruptions linked to the Middle East conflict. Cook said productivity gains from AI would deliver only modest disinflation over the next few years and would not arrive in time to offset this year’s broadening pressures.

She noted that electricity and water costs have risen about 5 per cent over the past year, partly reflecting demand from data centres. Cook did not validate market expectations for further rate moves, saying policy decisions would depend on incoming data. Her remarks reinforced the Fed’s hawkish tone as markets price in further tightening.