Fed's Goolsbee warns that without central bank independence, inflation might surge again

Fed Official Warns Against Threats to Central Bank Independence

Austan Goolsbee, President of the Chicago Federal Reserve, voiced concern on Thursday about recent criticisms directed at the central bank and its leader, Jerome Powell. He warned that undermining the Fed’s autonomy could trigger a resurgence of inflation.

“Any interference with the central bank’s independence creates significant problems,” Goolsbee stated during an interview on CNBC’s “Squawk Box.” He emphasized, “If the central bank’s independence is compromised, inflation could surge once again.”

Goolsbee’s remarks follow news that Powell was recently subpoenaed by the Justice Department in connection with a major renovation project at the central bank.