Chicago Fed President Austan Goolsbee delivered a blunt warning on central bank independence, saying any attempt to undermine the Fed would have severe economic consequences. “Anything that’s infringing or attacking the independence of the central bank is a mess,” he told CNBC.
Goolsbee cautioned that political interference in monetary policy would almost certainly reignite inflation pressures. “You’re going to get inflation come roaring back if you try to take away the independence of the central bank,” he said.
Drawing an international comparison, Goolsbee noted that criminal investigations targeting central banks are typically seen in countries such as Zimbabwe, Russia, and Turkey. He said these examples are not ones “you would characterize as advanced economies”.
