The Fed faces unprecedented political pressure while navigating six years above its 2% inflation target, geopolitical shocks, and AI hype outpacing real productivity gains. Chicago Fed President Austan Goolsbee explains why tariffs, Middle East conflict, and persistent inflation create the most dangerous economic environment he's seen, what Kevin Warsh's new leadership means for Fed operations, and why he's a "grim optimist" on AI despite mounting risks of overheating and market bubbles. Six consecutive years above the 2% inflation target combined with tariffs, war, and supply shocks create a more dangerous inflation environment than Goolsbee has previously encountered, risking self-fulfilling wage-price spirals.