Fed’s Goolsbee warns AI demand could keep inflation running hot
Chicago’s Fed President Austan Goolsbee crossed the wires on Thursday, October 15, noting that September was “a disappointing month for inflation.”
On October 15, the President of the Federal Reserve for Chicago, Austan Goolsbee, reported that September marked a "disappointing month for inflation." Despite remaining optimistic that "inflation drivers fade soon," Goolsbee emphasized that if prices surge due to demand overheating caused by AI, it "must be addressed." This week's figures for US Consumer Price Index (CPI) and Producer Price Index (PPI) pointed towards the potential need for a rate increase at the Federal Reserve's upcoming meeting on October 27-28.
However, investor sentiment has shifted, with a 25% chance of a hike, down from 40% the day prior after the CPI release.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.