Austan Goolsbee Is Worried the Economy Is Overheating

Chicago Federal Reserve President Austan Goolsbee said in August 2026 that inflation remains above the Federal Reserve's 2% target and cited signs of economic overheating, including low hiring and firing rates alongside GDP growth driven primarily by artificial intelligence and data center investment. Goolsbee expressed concern about uncertainty among central bankers regarding how to moderate the economy. He stated skepticism about certain economic metrics used to guide policy decisions and discussed reducing forward guidance in monetary policy.

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