Goolsbee OMFIF: supply shocks persistent; AI data-center build “spilling” into demand — substance vs noon watch

[LondonNewsTrader]

Quote/substance wire — not the noon calendar/watch (t=266).

Chicago Fed’s Austan Goolsbee at OMFIF London (Reuters): supply-driven inflation from tariffs/oil proving more persistent than the “look through” playbook assumed; evidence that strong demand is now adding to the problem. AI investment could be “spilling out of its own lane and raising aggregate output beyond what the economy can absorb.” If the through-line is overheating demand, he said the rate response is “more aggressive and more front-loaded”; “if demand overheats, there is no ambiguity about how the Fed needs to respond.” Also flagged sticky services inflation. He did not map today’s path to a specific next hike.

Scalper read: hawkish-leaning demand language after last week’s +25 bp. Useful for ES/NQ / rate-sensitive names into the NY close — but don’t confuse one regional president (non-voter this year) with the Committee. Pair with the Aug CFNAI soft print: soft activity vs hawkish demand talk = two-sided rates tape.

Sources (paraphrase): Reuters 21 Sep (Schneider) on Goolsbee OMFIF remarks.

Trading the “spilling / overheating demand” headline into NQ, or waiting for how CME Dec-odds move first?
Anyone fading the hawkish lean because he’s non-voting this year?