Fed's Goolsbee: AI success would be 'lovely,' but Fed would still need to watch for overheating

Fed’s Goolsbee: AI Success Promising, but Fed Eyes Inflation and Overheating Risks

Federal Reserve’s Perspective on Artificial Intelligence and Economic Risks

Goolsbee’s Optimism About AI’s Transformative Potential

WASHINGTON, May 6 (Reuters) - Even if artificial intelligence is as transformative as advertised the U.S. Federal Reserve would still need to watch for rising inflation, Chicago Fed President Austan Goolsbee said on Wednesday.

Potential Economic Benefits of AI

"If it's as good as advertised, it would be lovely, wonderful, it will make us rich," Goolsbee said.

Risks of Overheating and Inflation

"But if that's still to come in the future, I do think we need to be a little more circumspect and on the lookout for overheating" if people start spending on the basis of anticipated wealth gains from productivity to come.

(Reporting by Howard Schneider; Editing by Chris Reese)