Key facts
- Goolsbee expressed optimism that inflation drivers like tariffs and supply disruptions could resolve quickly.
- He noted that overheating demand, potentially from AI data center build-outs, would be more disturbing and require addressing.
Federal Reserve Bank of Chicago President Austan Goolsbee stated on Thursday that recent data indicating stronger-than-expected consumer and producer price inflation has been "discouraging." In an interview with CNN, Goolsbee conveyed optimism that if the drivers of inflation are temporary factors such as tariffs or supply disruptions stemming from geopolitical events, they could be resolved in the short term. However, he indicated that inflation stemming from overheating demand, possibly linked to the build-out of AI data centers, would be more concerning and necessitate action.