Fed’s Goolsbee Labels Recent CPI ‘Discouraging,’ Warns of Overheating Risks

• Fed’s Goolsbee called recent CPI data “discouraging.”
• Warned further high inflation would be “unacceptable.”
• Cited AI infrastructure as potential overheating risk.

Federal Reserve Bank of Chicago President Austan Goolsbee described recent CPI data as “discouraging,” specifically highlighting services inflation as a key concern. He stated that additional elevated inflation reports would be “unacceptable” and emphasized that the economy still “has work to do on the inflation side.” Goolsbee also warned against potential economic overheating, citing the buildout of artificial intelligence infrastructure as a contributing factor. While noting broader inflationary pressures, he underscored the importance of focusing on the overall inflation trend and reiterated the Federal Reserve’s commitment to achieving its 2% inflation target. He also conveyed a more optimistic outlook than some peers and reported no recession worries from his business contacts.