Fed's Goolsbee says strong demand may be adding to US inflation - AOL

Chicago Fed President Austan Goolsbee said U.S. inflation may now be driven not only by earlier tariff and energy shocks but also by strong demand, which could require the Federal Reserve to hike rates faster and more “front-loaded.” Speaking on Monday in London and later to reporters, he noted central bankers had been inclined to “look through” supply-driven inflation, expecting it to fade, but the persistence is changing the debate. Goolsbee pointed to booming investment in artificial intelligence that could raise prices more broadly, and to elevated services-sector inflation suggesting cost pressures beyond oil. After the Fed’s quarter-point rate increase last week, he said an overheating demand scenario would leave little ambiguity on policy response.