Tokyo, 28 May 2026 – Chicago Federal Reserve President Austan Goolsbee has warned that higher energy prices from the Iran conflict could worsen inflation risks at a time when artificial intelligence optimism is already encouraging companies and investors to spend aggressively.
Speaking at a Bank of Japan conference, Goolsbee said the market’s strong expectations for AI-driven productivity could create an unusual inflationary impulse. If businesses and households begin spending in anticipation of future AI gains before those productivity benefits fully materialise, the economy could overheat first and enjoy efficiency gains only later.
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