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Goolsbee warns Fed response if AI demand overheats

Chicago Fed President Austan Goolsbee says he watches for elevated service-sector inflation and for evidence that AI data center construction is raising aggregate output beyond what the economy can absorb; he adds there would be “no ambiguity” on Fed response if demand overheats.

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Chicago Fed President Austan Goolsbee said he is especially focused on elevated inflation in service-sector industries and on any signs that AI data center construction is spilling beyond its own lane and pushing aggregate output above what the economy can absorb. "If demand overheats, there i…"