Fed's Goolsbee warns AI data center boom signals economic overheating, impacting inflation and interest rates.

Chicago Fed President Austan Goolsbee warned that the rapid expansion of AI data centers resembles 'old-fashioned overheating,' suggesting that strong demand driven by AI investments is pushing inflation beyond supply shocks. This overheating could prompt the Federal Reserve to raise interest rates further to cool the economy, despite recent stock rallies fueled by AI-related companies. While inflation remains a key concern, Goolsbee highlighted that inflation is persisting in service sectors beyond energy and tariffs, indicating sustained demand pressure. Market reactions show a split: stocks rose on AI optimism, but bond markets and Fed officials signal tighter monetary policy ahead, with a high probability of a rate hike in December.

SHY (iShares 1-3 Year Treasury Bond ETF) trades at USD 81.33 on Pluang as of Nov 10, 2026 22:52 WIB, down 0.32% in one day. The ETF's market cap is $27.67 billion with a volume of 4,789,011. All Pluang orders for SHY are buys, reflecting investor interest despite expectations of tighter monetary policy.