Fed's Goolsbee says inflation could come 'roaring back' if central bank independence goes away

Core Viewpoint - Chicago Federal Reserve President Austan Goolsbee cautioned that recent attacks on the central bank and Chair Jerome Powell could negatively impact inflation, emphasizing the importance of the central bank's independence [1]. Group 1: Central Bank Independence - Goolsbee stated that any infringement on the independence of the central bank could lead to a resurgence of inflation [1]. - He expressed concern that ongoing investigations into the Fed's renovation project could be perceived as politically motivated, particularly in relation to interest rate decisions [2]. Group 2: Legal Issues and Political Context - Powell has been subpoenaed by the Justice Department regarding a multibillion-dollar renovation project at the Fed's headquarters, with cost overruns causing tension between the Fed and the White House [1]. - Goolsbee supported Powell's assertion that the investigation might be a pretext for political influence over interest rate policies [2].