Chicago Fed's Goolsbee says on CNBC the Fed needs to guard against demand overheating

Chicago Fed president Austan Goolsbee said on Friday that inflation lodged above the Fed's 2% target has spread beyond potentially temporary energy and tariff cost shocks, with the AI buildout forcing prices higher through strong demand, and many services and health care also experiencing price increases beyond what could be explained by oil prices or import taxes.

"Are we on a path back to 2%? My feeling is right now we are not and we got to deal with that," Goolsbee said on CNBC's Squawk Box. "Conventional wisdom says do everything thing you can to prevent demand overheating," Goolsbee said, with coming data on inflation the key to whether the Fed needs a faster pace of rate increases.