Watch CNBC's full interview with Chicago Fed President Austan Goolsbee

Summary

CNBC's Steve Liesman interviews Chicago Fed President Austan Goolsbee on the economy, labor market, inflation, and Fed independence. Goolsbee says the labor market is stable and the consumer remains strong, while services inflation is still sticky. He expects rates can fall if inflation convincingly returns to 2%, and he warns that attacks on Fed independence could reignite inflation.

• Goolsbee says jobless claims and other data show a stable, low-hiring/low-firing labor market.
• He has set aside concerns about jobs-market weakness and is focused on getting inflation back to 2%.
• He sees goods and tariff-related inflation easing but non-housing services and healthcare inflation as concerning.
• He expects rates lower by year-end if inflation progress continues.
• He defends Powell's crisis management but says the Fed moved too slowly on inflation.
• He warns criminal probes or political pressure on the Fed could threaten independence and reignite inflation.
• He supports audits and oversight of Fed spending but opposes coercive budget control tied to policy differences.