Federal Reserve Governor Lisa Cook said demand for artificial intelligence is lifting prices for chips, computers and software and may be creating broader inflation pressure through data-center demand for construction labor, energy, electricity and water. Consumer-price inflation was 3.4% last month, still above the Fed's 2% target after more than five years. Cook said interest rates should not be used to counter price increases confined to specific AI-linked sectors, though she acknowledged that AI investment can affect widely used inputs across the economy. The Federal Open Market Committee unanimously raised rates by a quarter point earlier this month despite President Trump calling for cuts. Traders see roughly a 70% chance of another quarter-point increase at the panel's late-October meeting, but Cook said the scale and number of future moves will depend on the economy's response to the recent increase.