[Chicago Fed President warns of risks of economic overheating and says inflation must be dealt with] On November 10th, Chicago Fed President Austen Goolsby said that policymakers need to deal with the economic overheating that may be caused by the construction of artificial intelligence and the expanding inflationary pressure. “We have to confront the mission’s misses on cost and inflation,” Goolsby said at an event in Chicago on Monday. Goolsby noted that rising prices for services not closely tied to energy or tariffs are also driving up costs. The Chicago Fed president does not have a vote on monetary policy this year but will have one in 2027. “Now, AI data center construction is beginning to look more like overheating of demand in the traditional sense to me,” he added, noting that central banks often need to respond to economic overheating in an “aggressive” manner.