[DEVELOPING] Fed's Goolsbee says AI data-center cost increases are spilling into broader inflation
Chicago Fed President Austan Goolsbee told Semafor that inflation is "starting to feel like aggregate overheating" and that AI data-center cost increases are "jumping out of its lane" (Reuters, Oct 13). After the September CPI release he called the data "discouraging" and said his concern about data-center construction and AI investment overheating the economy is growing (Bloomberg, Oct 14). For the AI sector, this ties the capex buildout itself to the rate-hike debate that weighed on long-duration and debt-financed AI names on Oct 14. To watch: Fed communication ahead of the Oct 27-28 meeting and December hike pricing.