Fed Official Warns Political Pressure Could Reignite Inflation as Gold Slides
Chicago Federal Reserve President Austan Goolsbee warned that political pressure on the central bank could undermine its independence and trigger a renewed surge in inflation.
His remarks followed controversy surrounding a Justice Department inquiry involving Fed Chair Jerome Powell, which Goolsbee described as a dangerous attempt to influence interest-rate decisions.
Financial markets reacted with continued weakness in gold prices, with spot contracts slipping below $4,600 per ounce.
Goolsbee stressed that Fed autonomy is essential for maintaining price stability and sustainable growth, praising Powell’s record in reducing inflation without pushing the economy into recession.
His remarks followed controversy surrounding a Justice Department inquiry involving Fed Chair Jerome Powell, which Goolsbee described as a dangerous attempt to influence interest-rate decisions.
Financial markets reacted with continued weakness in gold prices, with spot contracts slipping below $4,600 per ounce.
Goolsbee stressed that Fed autonomy is essential for maintaining price stability and sustainable growth, praising Powell’s record in reducing inflation without pushing the economy into recession.
