Fed Officials Goolsbee and Barkin Warn of Inflation and AI-Driven Overheating Risks

Federal Reserve policymakers Austan Goolsbee and Thomas Barkin have flagged ongoing inflation risks and withheld commitments ahead of the December 8–9 FOMC meeting. Goolsbee warned that services inflation is accelerating and heavy investments in data centers and AI infrastructure resemble traditional economic overheating, while consumer spending and employment remain stable. Financial markets have priced an 84% probability of a rate hike in December. Barkin noted near-term risks remain tilted toward inflation due to resilient consumer demand, but urged caution, highlighting the two-sided economic risks of rapid artificial intelligence adoption.