Federal Reserve officials: The independence of monetary policy is beyond doubt, and any erosion of it would have serious consequences!

Against the backdrop of frequent pressure from Trump on Federal Reserve Chairman Jerome Powell to cut interest rates and question his capabilities, Chicago Federal Reserve Bank President Austan Goolsbee emphasized the importance of monetary policy independence. He pointed out that monetary policy should be independent of political interference; otherwise, it could lead to rising inflation rates, slowing economic growth, and a deteriorating job market. At the same time, once the independence of the Federal Reserve is called into question, it will undermine its credibility and have serious negative impacts on the U.S. economy