Federal Reserve Governor Lisa D. Cook stated that while artificial intelligence offers long-term productivity potential, the current infrastructure buildout is contributing to inflationary pressures. Speaking at Oakland Tech Week on September 28, 2026, Cook noted that the Fed is exploring AI for internal tasks like document summarization and financial stability analysis, but does not use it for monetary policy decisions.
The demand for AI-related infrastructure, particularly data centers, has impacted resource costs. Cook reported that electricity and water prices have risen by approximately 5% over the past year due to this demand. Furthermore, companies have announced capital expenditures on AI technologies totaling roughly $2 trillion, though only a small fraction of these funds has been deployed to date.
Economic data for the twelve months ending in August 2026 shows total inflation at approximately 3.8%, with core inflation at about 3.4%. Cook supported the Federal Open Market Committee's recent 25 basis-point interest rate hike, noting that while AI may eventually provide disinflationary benefits, these effects will not offset inflationary trends for the remainder of 2026.
