Chicago Federal Reserve President Austan Goolsbee expressed caution Thursday over recent attacks on the central bank and its president. Jerome Powellsaying they could have a negative impact on inflation.
“Anything that undermines or attacks the independence of the central bank is a waste,” Goolsbee told a CNBC conference.Scream box” Interview. “You’re going to bring inflation back with a vengeance if you try to take away the independence of the central bank.”
Comments arrive just a few days later Powell confirmed he was subpoenaed by the Department of Justice regarding the multi-billion dollar project renovation project at Fed headquarters in Washington, DC. Cost overruns have been a point of contention between the Fed and the White House, with the latest developments pointing to possible criminal charges against Powell.
Although Goolsbee said he does not comment directly on legal matters, he expressed support for Powell’s statement Sunday that questions about the construction project could be seen as pretexting against the president. Donald Trump do what it can when it comes to interest rates.
“I agree with his argument that if you’re investigating as a pretext because you don’t agree with the rate decisions, that’s a disaster. We shouldn’t be in that situation,” he said.
Trump kept biting, often personal criticism of the Powell Fed. He has repeatedly called for much lower interest rates and nicknamed Powell “Too late” even though the Fed has lowered its key rate three times since September 2025.
Powell’s term as president ends in May, but he could remain governor until 2028.
As other Fed officialsGoolsbee said the Fed’s independence is essential for it to achieve its goals.
“I know there have been countries that have had criminal investigations into their central banks, but those countries are Zimbabwe, Russia, Turkey and a number of places that you wouldn’t call advanced economies,” he said.
Before taking office at the Chicago Fed in December 2022, Goolsbee had a long history of involvement in Democratic politics.
He chaired the Council of Economic Advisers under former President Barack Obama and was an adviser to Joe Biden’s campaign in 2020. However, he said Thursday that once “you become a sworn member of the Federal Reserve, you’re out of election business.”
Goolsbee called Powell a “first-ballot Hall of Famer” as Fed chair for bringing down inflation without causing a recession.
