Chicago Fed President Austan Goolsbee warned that inflationary pressures from the artificial intelligence investment boom are spreading beyond data centers into the broader U.S. economy. Surging demand for electricity, construction, land, and equipment tied to AI infrastructure is driving up costs across multiple industries, creating risks that could alter the Federal Reserve’s monetary policy path. Goolsbee characterized the trend as potential demand-driven overheating, stating he is increasingly concerned about persistent price pressures. If inflation remains elevated, the Fed may need to maintain tighter monetary policy for longer or consider further rate hikes, potentially delaying anticipated rate cuts.