Fed Officials Reaffirm Independence Amid Talk of Legislative Rewrites

Federal Reserve officials reiterated the importance of the central bank’s political independence, dismissing the likelihood of any near-term congressional effort to rewrite the Federal Reserve Act. Chicago Fed President Austan Goolsbee said economists are “unanimous” that insulating monetary policy from political pressure is essential to prevent a resurgence of inflation. He argued that credible independence keeps expectations anchored, which in turn supports price stability. Former St. Louis Fed President James Bullard echoed the view, telling reporters that Congress is unlikely to alter the Fed’s governing statute. Both officials framed autonomy as a precondition for sustaining progress on inflation without eroding the central bank’s credibility.