economy

January 15, 2026

Fed's Goolsbee says inflation could come 'roaring back' if central bank independence goes away

"Anything that's infringing or attacking the independence of the central bank is a mess," Goolsbee told CNBC.

Fed's Goolsbee says inflation could come 'roaring back' if central bank independence goes away

TL;DR

  • Chicago Fed President Austan Goolsbee believes attacks on the central bank's independence could cause inflation to "come roaring back."
  • Goolsbee supports Fed Chair Jerome Powell's view that legal issues might be a pretext for political pressure on interest rate decisions.
  • The Fed's independence is considered critical for achieving its economic objectives.
  • Goolsbee cited countries like Zimbabwe, Russia, and Turkey as examples of nations with criminal investigations into their central banks, contrasting them with advanced economies.
  • Despite a history in Democratic politics, Goolsbee stated that Fed members must be "out of the elections business."
  • Goolsbee has praised Powell as a "first-ballot Hall of Famer" for reducing inflation without causing a recession.

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