Cook says future Fed moves depend on data, flags AI's dual role in jobs and prices
The Fed governor says she is closely watching whether artificial intelligence causes a temporary rise in unemployment even as it adds to inflation pressure
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UpdateMonday, September 28, 2026 at 1:45 PM ET
Cook said the Fed's recent rate increase was aimed at inflation that had been running too high, and described the labor market as well positioned to absorb higher rates. Her remarks align with New York Fed president John Williams, who has said employment is not driving inflation, and Cleveland Fed president Beth Hammack, who sees underlying inflation still above target. Fed policymaker Jeff Schmid separately called US government debt "extreme." Money markets are pricing three more Fed rate hikes over the next year. The 10-year Treasury yield is at 5.23%, its highest since 2007, up 7 basis points on the day and nearly 65 basis points higher since the end of August.
Federal Reserve Governor Lisa Cook said further interest rate adjustments will depend on incoming data on inflation and the labor market, along with how the economy responds to the Fed's actions so far.
Cook said she is highly attentive to the possibility that artificial intelligence could cause a temporary rise in unemployment, though she said there is limited evidence so far that AI is changing the structure of the labor market. She said she hopes the pace of AI adoption will keep net job losses to a minimum.
On inflation, Cook said she expects continued price pressure in the coming months from both artificial intelligence and the conflict in the Middle East. She pointed to economy-wide pressure from AI-fueled demand and to signs that price pressures are broadening across the inflation data.
Cook's comments add AI to the list of inflation pressures already cited by fellow policymakers Paulson and Hammack. But her data-dependent framing, and her caveat that evidence of AI's labor market effects remains limited, keep her remarks within the hawkish consensus already priced in by markets rather than adding to it.