Goolsbee on Fed Independence

(Reuters) – Chicago Federal Reserve President Austan Goolsbee expressed concerns on Sunday regarding the potential questioning of the central bank’s independence from political pressure.

In an interview on CBS’ “Face the Nation,” Goolsbee responded to President Donald Trump’s recent criticisms of Fed Chair Jerome Powell. He emphasized that economists support central banks operating free from political interference, as they generally achieve better economic outcomes.

Conversely, he warned that countries lacking this independence often face higher inflation, slower growth, and poorer job markets.

Goolsbee stated, “I strongly hope that we do not move ourselves into an environment where monetary independence is in question, because that would undermine the credibility of the Fed.”