Chicago Fed President Goolsbee: Inflation could come 'roaring back' if Fed independence goes away

Summary

Chicago Fed President Austan Goolsbee joins CNBC's Squawk Box to discuss the criminal subpoenas and investigation facing the Federal Reserve, Fed independence, and the inflation risks of political interference. Goolsbee argues that attacking Fed independence could send inflation roaring back and disrupt the path to 2% inflation. He also distinguishes proper audits and cost oversight from coercive budget control tied to interest-rate policy disagreements. No specific rate path, asset recommendation, or tradable trade idea is provided in this excerpt.

• Goolsbee responds to reported criminal subpoenas and a probe involving the Federal Reserve and Chair Powell.
• He warns that countries with criminal central-bank investigations are not advanced economies and that attacking Fed independence is a mistake.
• He says taking away Fed independence could cause inflation to come roaring back and derail the path to 2% inflation.
• He stresses that the Fed's mandate is maximum employment and price stability, not pleasing the stock market or the president.
• He agrees that investigating the Fed as a pretext for disagreement with rate decisions would be dangerous.
• He says audits and cost oversight are appropriate but coercive control of the Fed budget over policy differences would be dangerous.
• The excerpt contains no explicit investment recommendation or specific tradeable expression.