Chicago Federal Reserve President Austan Goolsbee expressed concern on Thursday regarding recent criticisms directed at the central bank and its Chair, Jerome Powell. He stressed that such attacks could have negative repercussions on inflation.
"Anything that's infringing on or attacking the independence of the central bank is a mess," Goolsbee stated in a CNBC "Squawk Box" interview. "You're going to get inflation come roaring back if you try to take away the independence of the central bank."
The remarks were made just days after Powell confirmed he received a subpoena from the Justice Department concerning the multibillion-dollar renovation project at the Federal Reserve's Washington, D.C., headquarters. The project's cost overruns have become a contentious issue between the Fed and the White House, with recent developments indicating possible criminal proceedings against Powell.
While Goolsbee did not comment directly on legal matters, he supported Powell's earlier statement that questions regarding the construction project might be used as a pretext to influence interest rate decisions favored by former President Donald Trump.
"I agree with his argument that if you're investigating as a pretext because you disagree with the rate decisions, that's a mess. We should not be in that place," he added.
Trump has been a frequent critic of Powell, repeatedly calling for lower interest rates and even dubbing Powell "Too Late," despite the Fed reducing its benchmark rate three times since September 2025.
Powell's term as Fed Chair ends in May, but he may continue as a governor until 2028.
Like other Federal Reserve officials, Goolsbee emphasized the necessity of maintaining the Fed’s independence to achieve its economic objectives.
"I know that there have been countries that had criminal investigations of their central banks, but those countries are Zimbabwe and Russia and Turkey and a bunch of places that you would not characterize as advanced economies," he noted.
Before assuming his role at the Chicago Fed in December 2022, Goolsbee had a robust background in Democratic politics, having chaired the Council of Economic Advisers under former President Barack Obama and advised Joe Biden during the 2020 campaign. However, he stated on Thursday that joining the Federal Reserve removes one from the political realm. "Once you've become a sworn member of the Federal Reserve, you're out of the elections business," he remarked.
Goolsbee praised Powell's leadership at the Fed, describing him as a "first-ballot Hall of Famer" for successfully reducing inflation without triggering a recession.