Goolsbee Warns Productivity Gains May Fuel Inflation

Chicago Fed President Austan Goolsbee warned that anticipated productivity gains could spur higher inflation if households and firms increase spending.
He said expectations of future AI‑driven productivity may lead to overheating, forcing the Fed to raise interest rates further.
Incoming Fed Chair Kevin Warsh argued AI‑related productivity should lower demand pressure, potentially easing inflation, contrasting Goolsbee’s view.
Former Fed Chair Alan Greenspan noted past rate hikes despite productivity gains, highlighting uncertainty in policy response.