Cook warns of inflation risks
Fed Governor Lisa Cook said strong demand driven by artificial intelligence investment and high oil prices could continue to put pressure on inflation in the coming months.
Cook noted that inflation stood at around 3.8% in the 12 months through August, well above the Fed’s 2% target. She added that supply chain disruptions caused by conflicts in the Middle East could further intensify price pressures.
Cook said the labor market is strong enough to withstand potential interest rate hikes but gave no direct signal of another increase. She emphasized that the Fed’s upcoming decisions will depend on inflation, employment and other economic data. The Fed raised interest rates this month for the first time in three years, while officials indicated another increase could come before the end of the year.
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