Menu

Post image 1
Post image 2
1 / 2
0

Goolsbee Warns Oil Shock Amplifies Inflation Risk From AI Productivity Hype

WebProNews·Victoria Mossi·3 days ago
#aWzpOKJX
Reading 0:00
15s threshold

Chicago Federal Reserve President Austan Goolsbee delivered a pointed warning this week. Expectations around artificial intelligence could drive inflation higher. An oil price surge tied to the Iran conflict makes the outlook even more challenging for central bankers. “The bigger the hype about future productivity, the more rates may need to rise to prevent overheating,” Goolsbee said in remarks prepared for a Bank of Japan conference. He spoke on Thursday. The comments build directly on ideas he first laid out earlier in May. They push back against widespread assumptions that AI will automatically deliver lower prices and give policymakers room to ease. Markets have embraced the promise of AI. So have officials in the Trump administration and new Fed Chair Kevin Warsh. Yet Goolsbee sees a different dynamic at work. When productivity gains are anticipated rather than surprising, they spark spending and investment ahead of actual results.…

Continue reading — create a free account

Join HashtagPLUS to read full articles, follow hashtags, vote, and join the conversation.

Read More