The Fed assesses that increased spending on artificial intelligence and rising oil prices will intensify inflationary pressure.

Price growth in the US will remain a challenge in the coming months as well. According to Federal Reserve Governor Lisa Cook, one of the reasons for this is the increased demand for AI-related technologies and data centers. Rising oil prices are also having an effect.

According to Cook's assessment, the need for further interest rate increases is not yet clear. The Fed's next steps will depend on new inflation and employment data, as well as on the results of measures already taken. Cook believes the US labor market is still sufficiently strong under conditions of high interest rates.

The Fed raised interest rates in September for the first time in three years, a decision Cook supported. According to forecasts from central bank members, rates could be raised once more before the end of the year.

In August, annual inflation stood at around 3.8%, significantly exceeding the Fed's 2% target. According to Cook, price growth will be affected both by increased demand for AI-related projects and by rising energy costs and supply disruptions caused by the ongoing conflict in the Middle East.

Source: Reuters