Goolsbee: Demand-driven inflation would require a more aggressive Fed response

If U.S. ​inflation proves more ‌driven by ​demand it will require a more aggressive ‌campaign of interest rate hikes by the Federal Reserve, Chicago Fed President Austan Goolsbee said ‌on Monday, in comments that highlight what he ‌regards as an emerging concern for U.S. policymakers.

"If the through line is that it's coming ⁠from ​overheating demand, ⁠I think the implication is the rate response ⁠is more aggressive and more and more front-loaded," ​Goolsbee said in comments to reporters following ⁠an event in London. In recent data and ⁠in ​conversations with business contacts "we've been getting a little more sense ... that some ⁠of it maybe is coming from overheating demand," from ⁠ongoing ⁠services sector inflation and the continued artificial intelligence investment boom.