GoKawiilFed officials say AI data center spending is fueling broader inflation
Federal Reserve officials, including Chicago Fed president Austan Goolsbee, say the massive buildout of AI data centers is pushing up prices beyond tech-related industries, a shift from earlier blaming tariffs for inflation. Goolsbee described the effect as demand-driven overheating rather than limited to data center components and adjacent sectors. The comments come as the Fed raised interest rates in September and markets expect another hike this month.