Austan Goolsbee on Fed independence
From Squawk Pod: The future of the Fed: Austan Goolsbee & Krishna Guha - 04/21/25 | Audio Only · · CNBC Television
“I know the secretary I agree with the secretary of the treasury when he said Fed independence is a jewel box that we don't want to mess with. All economists I've been at the Fed for a little over two years. Before I was ever at the Fed, I would tell you economists are basically unanimous that Fed independence is critically important. And to see why, just look at the countries where they don't have Fed independence. Inflation is higher, unemployment is higher, growth is worse.”
On , Austan Goolsbee, President at Federal Reserve Bank of Chicago, spoke about Fed independence during Squawk Pod: The future of the Fed: Austan Goolsbee & Krishna Guha - 04/21/25 | Audio Only on CNBC Television.
About Austan Goolsbee
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, has expressed growing concern about inflation, stating that the U.S. has been above the Fed’s 2% target for five years and that progress has stalled and is now deteriorating. He noted that inflation is rising in categories beyond tariffs and oil, such as services, and said he is less optimistic about disinflation progress. Goolsbee dissented against a rate cut at the Fed’s last meeting of the previous year, saying it felt too early to cut rates without assurance that inflation is returning to target. He described the job market as stable but not good, with hiring, layoff, and vacancy rates holding steady. On artificial intelligence, Goolsbee said it will be “massively transformational” and happen fast, but he does not expect rapid job losses, citing industries where AI’s current error rate is unacceptable. He warned that if AI-driven productivity gains are hyped before they materialize, the economy could overheat in the short run. Goolsbee also said he is interested in seeing what incoming Fed Chair Kevin Warsh proposes on monetary policy and the balance sheet, and he noted that the Fed’s ample-reserves regime corresponds with a larger balance sheet than in the past.