Chicago Fed's Austan Goolsbee wants to get back to 'old school' economics: Focused on ordinary Americans, mindful of AI hype, and sharp on inflation | Fortune

Chicago Fed President Austan Goolsbee told Fortune he wants to return to “old school” economics, focusing on ordinary Americans while cutting through hype about AI. He agreed with concerns that conditions are stable but risks of overheating are rising: inflation progress has stalled and is worsening after strong gains. On the employment side, he pointed to indicators such as unemployment, vacancies, hiring, and layoffs, saying the stability largely reflects broad-based consumer spending. He described data-center expansion as “very hot,” potentially drawing resources away from other sectors, like construction and services, and warned it could eventually translate into aggregate overheating if services inflation accelerates. At the July FOMC meeting, he said he was comfortable holding the base rate as CPI data improved. He also argued AI’s impact on monetary policy depends on whether productivity benefits and inflation effects are expected or arrive unexpectedly.