Watch CNBC's full interview with Chicago Fed President Austan Goolsbee

On the sidelines of the BOJ-IMES Conference in Tokyo, Federal Reserve Bank of Chicago's President and CEO Austan Goolsbee says unpredicted AI-led productivity growth could reduce inflation like "manna from heaven", but there are risks of the economy overheating in the short-run if expectations for productivity gains are priced in. He also says he's not convinced that the Iran war's energy shock is transitory, and that consumer sentiment in the U.S. is bottoming out.