Cook, Economic Outlook · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 15, 2026
AI is acting as a macro demand shock—driving large-scale AI-related capital spending (notably a $1.5T+ data‑center buildout), boosting productivity and input/energy demand, and thereby supporting growth while keeping inflation elevated and arguing for a higher‑for‑longer policy stance.
Cook, Economic Outlook · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 15, 2026
In her speech, Fed official Cook signaled a shift in the Fed’s reaction function: with labor-market downside risks receding and inflation stronger, the Fed will demand clearer evidence of disinflation before easing, biasing policy to remain restrictive and even tighten if inflation doesn’t cool.
Cook, Economic Outlook · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 15, 2026
Cook warns inflation is broader and more persistent than a simple tariff-or-energy story: core goods are rising about 5% annually and headline 2026 inflation is roughly 1 percentage point above prior expectations, with commodity shocks (including from the Middle East) propagating into food and other goods—raising the risk inflation stays elevated and complicating the case for policy cuts while increasing exposure for rate- and margin-sensitive firms.
Cook, Economic Outlook · Federal Reserve (Speeches & Testimony)
Business, Finance & Industries · Jul 15, 2026
Cook warned that repeated supply shocks could become persistent by changing firm and wage-setting behavior after five years of above-target inflation, so although she backed holding rates steady—seeing recent tariff and Middle East effects as temporary—she stressed that inflation anchoring depends on public belief the Fed will act, not on relaxing policy.