Lisa Cook warns AI could complicate inflation control by 2027
Heads up: The Federal Reserve is keeping a close eye on AI, and not just for cool tech reasons.
Fed Governor Lisa Cook says that rapid advances in artificial intelligence could actually make it tougher to control inflation by 2027.
Basically, while AI might boost productivity someday, it could also keep prices higher for longer, making the Fed's job trickier.
Federal Reserve hikes interest rates again
To fight rising prices, the Fed recently hiked interest rates again, aiming to bring inflation down to its 2% goal (it was at 3.4% in August).
Cook pointed out that even though AI has big potential, there are still real-world issues like supply chain hiccups and global tensions slowing things down.
She hinted that the Fed may need to rethink how it deals with economic shocks as tech keeps changing the game.