Fed's Cook Warns AI Investments and Energy Costs Keep Inflation Pressures Elevated

Federal Reserve Governor Lisa Cook warned that artificial intelligence infrastructure buildouts, elevated oil prices, and supply chain disruptions are keeping upward pressure on inflation. Speaking in Oakland, Cook noted that AI enthusiasm and wealth effects are boosting household spending and broadening inflation into energy and construction. While utility costs have surged—running above 3% annualized according to earlier remarks, and around 5% year-over-year in subsequent details—Cook stated that further rate hikes remain strictly data dependent following the Fed's September 25-basis-point increase to 3.75%-4.00%, supported by a resilient labor market.