Fed’s Goolsbee Says Central Bank Independence Key to Low Prices

Federal Reserve Bank of Chicago President Austan Goolsbee defended central bank independence, arguing it’s necessary for achieving low and stable prices.

“The independence of the Fed couldn’t be more important for the long run inflation rate in this country,” Goolsbee said Wednesday in an interview on NPR, days after Fed Chair Jerome Powell said the Justice Department was targeting him in a criminal probe.

“Any place where you don’t have central bank independence, inflation comes roaring back,” Goolsbee said, when asked about Trump administration pressure on the Fed chief. “We’ve spent the last five years fighting to get the inflation ...