The AI boom is proving complicated for everyday Americans. It’s raising the cost of living and stopping the Fed from lowering interest rates. It is making some things faster and easier, but it is also changing how we live.

If other inflation drivers, such as tariffs and the Iran war, don’t drive prices higher from here, many economists think the inflation picture could brighten.

“Inflation remains uncomfortably high, but it’s moving in the right direction,” says Mark Zandi, chief economist of Moody’s Analytics.