Protecting the Fed's Independence from Political Influence

In a recent interview with CBS News, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, emphasized the importance of maintaining the Federal Reserve's independence from political pressures. "It is crucial to preserve the Fed's independence from political interference," Goolsbee stated, highlighting concerns over the potential questioning of monetary independence in the United States.

Business Concerns Over Tariffs and Economic Activity

Goolsbee also touched upon the anxiety among businesses regarding the impact of tariffs, noting uncertainty about their scope and extent. He pointed out that preemptive buying before tariffs take effect is more noticeable on the business side, suggesting that current economic activity levels might be "artificially high" due to such frontloading. He anticipates a decrease in economic activity in the coming months as a result.