Fed Governor Cook: AI-Driven Growth Won’t Offset Near-Term Inflation

Cook's framing matters because it separates the AI productivity story from the inflation story: even if AI lifts longer-run output, that does not resolve the price pressures the Fed is currently managing. The practical effect is to keep near-term policy tied to conventional inflation data rather than to any assumed AI disinflation. What is worth watching is whether other Fed officials echo this distinction, since a shared view would signal that AI optimism is not yet being priced into the policy reaction function.