Fed Rules Out AI-Driven Price Relief for 2024

Federal Reserve Governor Lisa Cook warned on Sept. 28, 2026 that efficiency gains from artificial intelligence will not arrive quickly enough to temper inflation later this year. Reaction pending.

Cook warns AI won't ease inflation

Cook said the timing of productivity improvements from AI is too slow to blunt near-term price momentum, officials said. The comments, given this week, underline a view among some policymakers that technology-driven gains are a medium-term force rather than an immediate disinflation mechanism, officials said.

Officials said the remark matters for rates because it reduces the case for assuming rapid relief in price pressures. Market participants tracking short-dated Treasury futures and overnight-index swaps will be especially attentive to any language that suggests policymakers expect inflation to stay elevated into the autumn, officials said.

Officials said the Fed will continue to weigh incoming data against the outlook for services inflation and labor costs, which remain important inputs to policy. Investors will monitor inflation readings through Dec. 31, 2026, and central bank communications over the coming months to judge whether price pressures ease enough to change the expected path for short-term interest rates by year-end.