Fed's Goolsbee (2027 Voter) says AI is an inflation problem, inflation is still way too high, reports Semafor

The job market still looks very stable to me Growth has been solid, consumer spending solid. We’re falling down on the inflation side of the mandate. “Prices are going up in spaces that are not just components in data centers and the directly adjacent industries,” he said on Semafor’s Compound Interest. “I’m getting increasingly nervous that that’s just straight, old-fashioned overheating demand.” “If inflation remains persistent, then I think it’s clear what the Fed has to do,” he said, when asked whether the central bank should raise interest rates again when it meets later this month. Inflation tied to the AI boom is "jumping out of its lane" and starting push up prices in unrelated corners of the economy. Need to start showing some progress if we’re going to get back on the kind of rate-cutting path that we were on.