Chicago Fed Pres. Goolsbee is speaking and says:
- Impact of rising productivity on inflation remains active topic of debate.
- Activities impact on inflation and interest rates could go in either direction.
- If households anticipate future income, wealth gains from higher productivity, they could produce spending inflation.
- If people pull forward future expected earnings for spending today, it could easily overheat the economy.
- If AI is as good as advertised it would be lovely, but the Fed still needs to be on the lookout for overheating.
Goolsbee is a voter in 2027.
