Chicago Federal Reserve President Austan Goolsbee cautioned against recent criticisms of the central bank and its Chair, Jerome Powell, warning they might negatively impact inflation. During an interview on CNBC's Squawk Box, Goolsbee stated, "Anything that's infringing or attacking the independence of the central bank is a mess." He emphasized that such actions could lead to a resurgence of inflation.
These remarks followed Powell's disclosure that he had been subpoenaed by the Justice Department regarding cost overruns on a massive renovation project at the Fed’s Washington, D.C., headquarters. Tensions have arisen between the Fed and the White House over these overruns, with indications of a potential criminal case against Powell.
Although Goolsbee refrained from commenting directly on the legal issues, he supported Powell's Sunday assertion that the investigation might be a pretext for President Donald Trump to influence interest rates. "I agree with his argument that if you're investigating as a pretext because you disagree with the rate decisions, that's a mess," Goolsbee said. "We should not be in that place."
President Trump has been vocal in his critiques of Powell, urging for significant rate cuts and dubbing Powell "Too Late," despite the Fed's three rate cuts since September 2025. Powell's term as chair concludes in May, with the possibility of remaining as a governor until 2028.
Echoing other Fed officials, Goolsbee reiterated the necessity of Fed independence for achieving its objectives. He drew comparisons to countries like Zimbabwe, Russia, and Turkey, cautioning against following paths similar to theirs regarding central bank investigations.
Before his current role at the Chicago Fed, Goolsbee had extensive ties with Democratic politics, having chaired the Council of Economic Advisers under former President Barack Obama and advising Joe Biden’s 2020 campaign. However, he affirmed his apolitical stance since joining the Federal Reserve. He praised Powell as a "first-ballot Hall of Famer" for successfully lowering inflation without instigating a recession.