Chicago Fed President Calls Recent Inflation Data Discouraging
Austan Goolsbee warns that inflation driven by AI data center expansion or overheating demand would be more disturbing than temporary supply disruptions.
Federal Reserve Bank of Chicago President Austan Goolsbee described recent consumer and producer price inflation data as "discouraging" during a CNN interview on Thursday.
Goolsbee expressed optimism that inflation may subside if the current drivers are temporary factors, such as tariffs, supply disruptions, or conflicts in the Middle East. He noted that these scenarios represent the best-case outcome for the economy.
However, Goolsbee warned that inflation stemming from overheating demand or the rapid expansion of AI data centers would be "more disturbing." He stated that such drivers would require a different policy response to address the underlying economic pressure.
