Cathie Wood urges Federal Reserve to consider AI-driven deflation

The ARK Invest CEO argues CPI and PPI are missing a collapse in AI software costs that the Fed should factor into policy Cathie Wood has a message for the Federal Reserve: the inflation gauges you trust may be missing a big part of the picture. The ARK Invest CEO argues that the Consumer Price Index and Producer Price Index undercount the deflation coming from AI software. She wants the Fed to start paying attention. What Wood is actually saying Wood’s latest commentary was published around November 7 to 9, 2026. Her core claim is that CPI and PPI understate how fast AI is pushing prices down. CPI tracks what consumers pay for a basket of goods and services. PPI tracks what producers receive for their output. Together, they are among the main signals the Fed watches when deciding whether the economy is running hot. Wood’s view is that neither index fully captures what is happening in AI software and inference. Inference is the computing work an AI model does each time it answers a question or generates an output. In remarks from late September and early October 2026, Wood pointed to a 99.99% annual decline in AI inference costs at constant performance levels. Good deflation versus ...