Fed’s Goolsbee Warns Inflation Could “Roar Back” if Central Bank Independence Is Undermined

Chicago Federal Reserve President Austan Goolsbee warned that the United States could see inflation return with force if the Federal Reserve loses its independence from political influence. Speaking in an interview, Goolsbee emphasized that preserving the Fed’s ability to make monetary policy decisions without direct political pressure is essential to maintaining price stability and controlling inflation — a task the central bank has struggled with over the past few years. Goolsbee’s comments come amid heightened political scrutiny of the Federal Reserve and its leadership. The Justice Department recently subpoenaed Fed Chair Jerome Powell in connection with his testimony about a costly renovation of the Fed’s headquarters, an action Powell and others have called politically motivated. Goolsbee reiterated that attacks on the Fed’s autonomy — especially calls to remove or influence the chair — risk destabilizing economic expectations and could lead to inflation “roaring back.” He framed central bank independence as a cornerstone for long‑term low and stable inflation and warned that weakening that independence may harm the economy. The broader economic context includes ongoing debate about potential interest rate cuts and the pace of inflation’s return to the Fed’s 2% target, with policymakers signaling caution and data‑dependence before altering policy. #FederalReserve #CentralBankIndependence #InflationRisk #AustanGoolsbee #SlimScan #GrowthStocks #CANSLIM