Federal Reserve Governor Cook said that future productivity gains brought about by artificial intelligence may not be enough to offset short-term price pressure in a timely manner, and warned that this trend could drive up inflation throughout the economy. Cook said that the Fed's interest rate hike earlier this month was necessary to deal with high inflation, and future policy actions will depend on economic data. Cook said, “Currently, I expect productivity gains in the next few years to bring about a moderate slowdown in inflation. However, I don't think these effects will come in time to offset the growing inflationary pressure later this year.”

Federal Reserve Governor Cook said that future productivity gains brought about by artificial intelligence may not be enough to offset short-term price pressure in a timely manner, and warned that this trend could drive up inflation throughout the economy. Cook said that the Fed's interest rate hike earlier this month was necessary to deal with high inflation, and future policy actions will depend on economic data. Cook said, “Currently, I expect productivity gains in the next few years to bring about a moderate slowdown in inflation. However, I don't think these effects will come in time to offset the growing inflationary pressure later this year.”