Chicago Fed President Austan Goolsbee: Higher interest rates will have to slow the economy to combat supply shocks, which will be "painful."
Austan Goolsbee stated that central banks have reached their limit in waiting for supply shocks, meaning higher interest rates will have to slow down sectors of the economy that may not be pushing up prices. He also believes that the AI investment boom is "not staying on its rails," citing conversations with businesses that indicate growing labor market pressure in AI-related industries.
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Source:X@NickTimiraos · Source Link
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