# Fed has work to do on inflation, Goolsbee warns

> Chicago Fed President Austan Goolsbee says the central bank is moving away from its inflation target and must act to restore credibility.
- Title: Fed has work to do on inflation, Goolsbee warns · CNBC
- Summary: Chicago Fed President Austan Goolsbee says the central bank is moving away from its inflation target and must act to restore credibility.
- Keywords: austan goolsbee, chicago federal reserve, inflation, federal reserve, producer price index, consumer price index, fomc, CNBC
- Source: CNBC — https://cnbc.com/2026/11/13/chicago-feds-goolsbee-says-central-bank-has-definitely-got-work-to-do-on-inflation.html
- Author: Jeff Cox
- Published: 2026-11-13T14:22:07+00:00
- Read time: 1 min
- Topics: austan goolsbee, chicago federal reserve, inflation, federal reserve, producer price index, consumer price index, fomc, business, finance
## Goolsbee: Fed must restore credibility
Chicago Federal Reserve President Austan Goolsbee told CNBC on Friday that the central bank has definitely got work to do to continue to reestablish its credibility on inflation.

> the central bank has definitely got work to do to continue to reestablish its credibility
## Inflation data shows persistent problem
The producer price index rose zero point three percent in October, the highest annual gain of six point five percent since November two thousand twenty-two. Consumer prices also rose more than expected.
## Six years above target with no progress
Goolsbee said inflation has been above the Fed's two percent target for almost six years.While there was sometimes progress, lately the central bank is not making any progress and it is going the wrong way.

> We've been above 2% for almost six years, and while it sometimes we were making progress, lately we're not making any progress, and if anything, it's going the wrong way
## Demand overheating from AI data centers
Goolsbee said inflation is rising and proving far more persistent than predicted. Old-fashioned demand overheating from AI data center buildout is starting to spread beyond its original sector.

> Inflation is rising. It's proved far more persistent than we predicted at the beginning from the supply shocks, and now we're adding this old-fashioned demand overheating coming from the AI data center buildout, that looks like it's starting to spread out of its lane
## Key takeaway

Chicago Fed President Austan Goolsbee warned Friday that the central bank is drifting further from its two percent inflation goal and needs to take action to restore credibility.