Chicago Fed President Goolsbee emphasizes Fed independence is crucial for fighting inflation

From CNBC: 2025-04-21 09:29:00

Federal Reserve Chicago President Austan Goolsbee warned against reducing central bank independence as Trump criticized Chair Jerome Powell. Goolsbee stressed the importance of Fed independence for hitting inflation targets and maintaining economic stability. Trump renewed calls for lower interest rates and may consider removing Powell as Fed chair, despite legal limitations.

Goolsbee emphasized the critical nature of Fed independence for economic stability, citing examples of countries without it facing higher inflation, unemployment, and worse growth. Trump continued to push for lower interest rates and hinted at removing Powell as Fed chair. Powell has stated he cannot be fired under the law and plans to serve through 2026.

Read more: Chicago Fed’s Goolsbee says Fed independence is ‘critically important’ for its inflation fight