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Fed’s Goolsbee Warns Oil Shock Could Amplify AI-Driven Inflation Risks

By Tim Clark on May 28, 2026 2:34 pm |

Global Financial Market, Market Trends and World News

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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Author

  • Tim Clark is a Senior Geopolitical Analyst for The Ledger Asia, specializing in the intersection of international relations and market stability. With over a decade of experience, Tim provides deep-dive insights into Indo-Pacific security, global supply chain resilience, and the strategic competition between major powers.

    Previously a consultant for leading international think tanks, he focuses on how shifting diplomatic landscapes and maritime disputes impact corporate governance and trade policy. At The Ledger Asia, Tim’s analysis equips readers with the clarity needed to navigate the complex regulatory and economic environments of Southeast Asia and beyond.

Published in Global Financial Market, Market Trends and World News

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