Fed's Cook: AI Buildout, Fuel Pressures to Keep Inflation High
The Spin
Pro-establishment narrative
Trillions poured into data centers is overheating the economy, bidding up chips, electricity, building supplies and skilled labor faster than supply can respond. Main Street eats the cost increases while the financial gains stay concentrated at the top. Holding rates too low while that demand shock broadens would lock inflation above target for years.
Establishment-critical narrative
Technology collapsing the cost of intelligence, transactions and sequencing is a deflationary force, and output can rise without prices following. What's actually propping up inflation is a war premium on crude that fades once supply floods back into a market that doesn't need it. Tightening into supply-led growth mistakes productivity for overheating — the central bank itself risks prompting economic shock.
