Fed's Goolsbee "Monetary policy independence is very important… political intervention could reignite inflation"

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, emphasized that the independence of the Federal Reserve System (Fed) must be maintained.

According to Walter Bloomberg, an economic breaking-news account, on the 12th (local time), Goolsbee said, "It is very important that monetary policy be decided without political interference," and "In countries where central banks are not independent, inflation tends to surge again."

He also said, "To curb inflation, the Fed sometimes has to play the role of 'taking away the punch bowl.'" This means there is a need to cool excessive market heat in a phase of economic overheating through interest rate increases or tightening policies.

Goolsbee's remarks came amid continuing controversy in U.S. political circles over the Fed's interest-rate policy and independence. Fed officials have repeatedly emphasized that monetary policy decisions should be based on the dual mandate of price stability and employment and should be free from political pressure.