Austan Goolsbee, president of the Chicago Fed, is advocating for a return to old-school economics focused on ordinary American consumers rather than on AI promises. Inflation remains above the Federal Reserve’s 2% target, driven by supply-side shocks from geopolitical conflicts and tariffs. Goolsbee is skeptical of tech titans’ enthusiasm about AI and warns of economic overheating risks from the explosion of data centers, which are monopolizing resources in sectors like construction. The primary risk he identifies for the economy is a potential slowdown in household consumption, which has been the backbone of current economic stability. At the last FOMC meeting in July, the Fed held its base rate unchanged due to recent improvement in the latest inflation data.
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