**AI Boom Starts Spreading Inflation**

Chicago Fed President Austan Goolsbee says the **AI boom is becoming an inflation problem**. Price pressure is spreading beyond data center components and adjacent industries.

Illinois businesses report **scarce electricians, higher construction costs, and year-long waits for electrical components** as data centers compete for the same resources. Land, power, water, and infrastructure costs tied to AI campuses have also risen sharply.

Goolsbee is increasingly concerned this reflects **overheating demand**, not a temporary supply shock. If inflation stays persistent, another rate hike later this month remains possible, reinforcing the higher-for-longer pressure already weighing on banks and long-duration tech.

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