Goolsbee warns AI investment boom may fuel persistent inflation

The Chicago Fed president says AI-driven cost pressures are spreading past data centers and into the wider economy The AI boom has been sold as a productivity miracle. Chicago Fed President Austan Goolsbee wants everyone to know it also comes with a bill. In an interview on October 13, 2026, Goolsbee warned that AI investment is pushing inflation beyond the data center fence line. He described the risk as aggregate overheating , which is central-bank speak for an economy running hotter than it can sustain. Goolsbee’s argument starts with a distinction that matters a lot to policymakers.

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