Chicago Fed President: We are failing on the inflation side of the dual mandate | Invest 2026

Chicago Fed President Austan Goolsbee tells Brian Sozzi the Federal Reserve is failing on the inflation side of its dual mandate, and that the AI data center build-out may be a historically sized stimulus pushing the economy into what he calls old-fashioned demand overheating. He says inflation has run above target for three or four months and is moving the wrong way in categories that cannot come from tariffs or oil, and he points to rising costs for electrical components, chips, land and construction across his district. He will not rule out a half-point move. The Fed raised rates a quarter point on 16 September, its first increase since 2023, and held in October.

Featuring:
Austan Goolsbee, President, Federal Reserve Bank of Chicago
Brian Sozzi, Executive Editor, Yahoo Finance

Watch the full day of Yahoo Finance Invest: https://youtube.com/live/rAYVxDJYeAc

Timestamps
0:00 Why he called inflation disturbing
1:29 The data center build-out as a historically sized stimulus
2:43 What happens if the build-out jumps out of its lane
5:06 How far away the wage-price spiral is
6:08 Whether September’s rate increase has shown up yet
7:22 Hawk, dove, or data dog, and what he is watching
10:07 Whether he could back a half-point move
12:00 Where the Fed is failing and where it is not

#FederalReserve #Inflation #AI #YahooFinance

==
AlphaSpace by Yahoo Finance: A Professional-Grade Investment Platform Built for Everyday Investors.
👉 https://finance.yahoo.com/about/promos/gold/alphaspace?ncid=100003571