Fed’s Lisa Cook warns AI spending could fuel inflation into 2027

Artificial intelligence was supposed to make everything cheaper. According to Federal Reserve Governor Lisa Cook, it may make some things more expensive first. Cook has flagged AI-driven capital spending as a source of inflationary pressure. She says that pressure could become a primary concern for the central bank heading into 2027. What Cook actually said Cook laid out her case in a speech at Oakland Tech Week on September 28, 2026. Her focus was the gap between what companies have promised to spend on AI and what they have spent so far. Companies have announced approximately $2 trillion in AI-related investment plans, much of it aimed at data centers. Only a minor portion of that money has actually gone out the door. Cook pointed to costs tied to the buildout, including electricity. She noted that key inputs have each risen around 5% over the past year. Cook did not frame AI as purely inflationary, though. She expects productivity gains from the technology could produce modest disinflation “within the next few years.” The catch is timing. She cautioned that those gains are unlikely to offset the inflationary pressures she expects to persist through late 2026. The 2027 warning Co...