Federal Reserve Governor Lisa D. Cook stated on September 28 that the expansion of AI infrastructure is a primary driver keeping inflation above the 2% target. The surge in demand for data centers and semiconductors is increasing costs for energy, labor, and hardware across the broader economy.
The Federal Open Market Committee responded to persistent inflation by raising interest rates by 25 basis points. Officials noted that while approximately $2 trillion in AI-related capital expenditure has been announced, only a small portion has been deployed, suggesting that inflationary pressures may continue to rise as projects move into construction.
Data cited by Cook shows that electricity and water costs rose by approximately 5% year-over-year in 2026. Additionally, core goods prices have maintained an annualized growth rate above 3% throughout the year. The Fed anticipates that AI-driven productivity gains will provide only modest disinflation in the near term.
Future monetary policy decisions will remain data-dependent. The central bank indicated a willingness to continue tightening financial conditions as long as inflation remains elevated, noting that the current trajectory of resource demand from the tech sector complicates efforts to reach the 2% goal.
