Goolsbee Warns Inflation Risk if Fed’s Independence Is Undercut as White House Pledges Respect for Autonomy

Overview

• Austan Goolsbee told CNBC that inflation would return "with full force" if the central bank’s independence were ended and called any attack on that autonomy a disaster.
• He voiced support for Jerome Powell after a threatened Department of Justice indictment and declined to comment on legal specifics.
• Goolsbee said the investigation appears tied to disagreement with monetary policy decisions, echoing Powell’s argument.
• Multiple Federal Reserve officials have recently spoken out to defend the institution’s independence from political pressure.
• White House economic adviser Kevin Hassett said the administration respects the Fed’s autonomy and described the DOJ probe as a simple information request that he expects will not result in action against Powell.