Policymakers can no longer afford to look through supply shocks that have become a regular feature of the economy, Chicago Fed President Austan Goolsbee said Monday. Lately, supply shocks such as wars and tariffs have occurred more frequently and lasted longer than they used to in the past,

Goolsbee highlighted evidence that AI data center construction is “spilling out of its own lane” and raising aggregate output beyond what the economy can absorb.

"We seem to have entered a period where large supply shocks — from wars, tariffs, weather, supply chain disruptions, oil shocks, and so on — have become a regular feature of the economy," Goolsbee said in a speech at the Official Monetary and Financial Institutions Forum Event in London,

Chicago Fed President Austan Goolsbee said persistent supply shocks leave the central bank little choice but to raise rates and reduce employment