FED'S COOK SAYS AI IS THE TOP RISK FOR 2027 Cook says AI is already causing pockets of inflation and inflationary pressure that is not slowing down, and that she worries about supply bottlenecks and when productivity gains will arrive. She says she is cautious that AI could be a major reorganization of work. On policy: - Supply shocks have had surprisingly persistent effects and are becoming more salient for policy - The optimal response to a supply shock could be sector-dependent - The Fed needs to make sure inflation expectations don't become unanchored, and has to be attentive to consumer confidence Cook says she doesn't think private credit is having a big effect on financial stability. 01-OCT-2026 04:08 PM ET