Federal Reserve Governor Cook: AI cannot offset short-term inflation pressures; the job market can withstand further rate hikes.

Federal Reserve Governor Cook said that the productivity gains brought by artificial intelligence in the future may not be sufficient to offset short-term price pressures in time, and warned that this trend could push up inflation across the economy. Cook said that the Fed's rate hike earlier this month was necessary to address elevated inflation, and future policy actions will depend on economic data. Cook said: "At present, I expect productivity gains over the next few years to bring about a modest easing of inflation. However, I do not think these effects will arrive in time to offset the inflationary pressures that are broadening later this year."