Lisa D Cook says AI buildout is raising inflation risks

Lisa D. Cook, a Member of the Board of Governors of the Federal Reserve System, delivered a speech on the U.S. economic outlook and said inflation risks have shifted higher than employment risks.

• Cook said the AI buildout is adding to inflation pressure, with companies having announced more than $1.5 trillion in data center plans and with spending raising prices for chips, high-tech equipment, software, and utilities.
• She said the Fed kept rates steady, noted June 2026 inflation at 3.7% versus the 2% target, and stated she is prepared to act if disinflation does not appear soon.