Austan Goolsbee, President of the Federal Reserve Bank of Chicago, emphasized the critical importance of the Federal Reserve’s independence in combating inflation during an appearance on CNBC’s “Squawk Box.” Goolsbee highlighted that maintaining long-term inflation expectations at the 2% target relies heavily on the Fed’s autonomy. He warned that interference could lead to higher inflation, worse growth, and increased unemployment. While refraining from directly addressing President Trump’s criticisms, Goolsbee reiterated the consensus among economists that Fed independence is essential for economic stability.
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