• Goolsbee underscores the importance of central bank independence.
• Trump's recent criticisms may threaten the Fed's credibility.
• Economists support the idea that political interference worsens economic outcomes.

Chicago Federal Reserve President Austan Goolsbee has warned against any efforts to undermine the independence of the central bank, expressing concern over recent political tensions. In an interview on CBS' "Face the Nation," Goolsbee stated, "I strongly hope that we do not move ourselves into an environment where monetary independence is in question, because that would undermine the credibility of the Fed," following remarks from President Trump criticizing Fed Chair Jerome Powell, according to Reuters.

During the discussion, Goolsbee emphasized that central banks with political independence result in better economic outcomes. He noted, "The inflation rate is higher, growth is slower and the job market is worse" in countries lacking such independence. This sentiment reflects a broader consensus among economists regarding the critical nature of monetary policy free from outside interference, as he reiterated the potential negative impacts on the economy from political pressures, according to Bloomberg.

Furthermore, Goolsbee addressed the challenges posed by President Trump's earlier remarks, which could complicate the Federal Reserve's apolitical stance. He remarked, "There's virtual unanimity among economists that monetary independence from political interference... is really important," a view he maintained through his experience both at the Fed and as a research economist, according to CBS News.