Chicago Federal Reserve President Austan Goolsbee expressed concern on Sunday about the US moving towards an environment where the central bank’s ability to set monetary policy independently of politics is questioned. In response to a question on CBS’ “Face the Nation,” Goolsbee emphasized that economists agree that central banks with unrestricted autonomy tend to have better economic outcomes.
He noted that countries without such freedom often experience higher inflation rates, slower growth, and poorer job markets. Goolsbee strongly hopes that the US does not follow this path, as it would undermine the credibility of the Federal Reserve. The Fed’s independence is crucial for maintaining trust in its decisions, according to Goolsbee.
Source: https://www.reuters.com/business/finance/feds-goolsbee-hopes-us-not-moving-where-monetary-independence-is-questioned-cbs-2025-04-20