Fed's Goolsbee Warns Against Undermining Central Bank Independence

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, issued a warning against actions that may limit central bank independence, just days after U.S. President Trump expressed discontent with Federal Reserve Chairman Jerome Powell. "I strongly hope we do not find ourselves in a position where monetary policy independence is questioned," Goolsbee said. "That would undermine the Fed's credibility." Goolsbee noted that in countries where central banks do not have independent monetary policy, "inflation is indeed higher, economic growth is slower, and job markets are worse."