Chicago Fed's Goolsbee says the Fed needs to guard against demand overheating
TLT•Austan Goolsbee said inflation above the Fed's 2% target has spread beyond energy and tariff costs, and that incoming inflation data will help determine whether rate increases need to accelerate.
1. Inflation and demand
Chicago Fed President Austan Goolsbee said inflation above the Fed's 2% target is showing up beyond potentially temporary energy and tariff cost shocks, including in services and health care. He said the AI buildout is pushing prices higher through strong demand. Goolsbee said he does not believe the economy is currently on a path back to 2%, and that incoming inflation data will be key to whether the Fed needs a faster pace of rate increases.
