Fed’s Goolsbee warns AI could produce stagflation. ‘The bigger the hype, the bigger the concern.’
- May 12
- 1 min read
BARRON’S — Speaking at the Hoover Institution’s annual monetary policy conference at Stanford University, Goolsbee said that widely expected productivity gains from AI are more likely to put upward pressure on rates than bring them down.
The argument cuts against a case that Warsh, the expected successor to Jerome Powell as Federal Reserve chair, has been making all year. In February, Warsh said AI will usher in “the most productivity-enhancing wave of our lifetimes” and called it potentially “structurally disinflationary,” suggesting it would give the Fed room to cut rates.
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