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This is a recap of an interview with Austan Goolsbee, President of the Chicago Federal Reserve Bank, conducted on “Face the Nation with Margaret Brennan” on April 20, 2025.
WEIJIA JIANG: We turn our attention to the current economic landscape and welcome Austan Goolsbee, the president of the Chicago Federal Reserve Bank, joining us from Chicago. Good morning, Austan.
AUSTAN GOOLSBEE: Good morning, Weijia. Thank you for having me.
WEIJIA JIANG: I’d like to discuss the recent tariff plans from the Trump administration. Last week, Federal Reserve Chairman Jerome Powell noted that the impact of these tariffs could exceed earlier predictions, leading to heightened inflation and slower economic growth. Do you share that perspective?
AUSTAN GOOLSBEE: Absolutely. The Chicago Fed district encompasses a significant part of the Midwest—covering states like Iowa, Illinois, Indiana, Wisconsin, and Michigan. In my discussions with local business leaders and community figures, there has been a growing concern that heightened tariffs, particularly as hinted at earlier this year, could disrupt their operations considerably. The recent tariff announcements in April were indeed larger than anticipated, leaving many uncertain about their future implications. There are too many unknowns, especially concerning tariff reassessments that may occur in the next three months.
WEIJIA JIANG: The administration maintains that various deals are in progress, so we must remain patient. Gary Cohn, a former top economic adviser to Trump, recently discussed how these tariffs are affecting consumer behavior on CNBC. Let’s take a listen.
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GARY COHN: There’s a key concern about the upcoming months. Are we potentially pulling demand from the future into the present? Consumers might rush to buy now to avoid future tariff hikes, instead of waiting as they normally would.
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WEIJIA JIANG: Cohn suggests that consumers are accelerating purchases to evade potential tariffs. Are you observing similar patterns among your contacts in Chicago, and how might this affect your economic outlook?
AUSTAN GOOLSBEE: Yes, it appears that such preemptive buying is particularly evident in the business sector. Anticipation of tariffs has prompted many companies, especially in the auto industry, to stockpile components and materials that would be subject to these tariffs. This could result in an artificial spike in economic activity now, followed by a downturn later as demand levels off. Despite this, I remain hopeful, along with the people I converse with in the Midwest, that these challenges might foster a renaissance of robust global trade, as Secretary Besent has suggested. Preliminary data before April showed encouraging signs, such as a stable unemployment rate and decreasing inflation. It’s crucial to remain vigilant and avoid the volatility experienced in 2021 and 2022 when inflation surged uncontrollably.
WEIJIA JIANG: I want to revisit Powell’s comments regarding the effects of tariffs, which prompted President Trump to express his frustrations, stating “Powell’s termination cannot come fast enough.” Here’s what he said when pressed on whether he could remove Powell from his position.
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DONALD TRUMP: I’m not satisfied with his performance. I’ve made that clear, and if I choose to act, he won’t stay in that position long, believe me.
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WEIJIA JIANG: Austan, while I understand the Fed operates independently of politics, do you think remarks like this complicate the Fed’s role as a nonpartisan entity?
AUSTAN GOOLSBEE: I appreciate you not asking me for legal opinions, as my expertise is in economics. However, I will say that the independence of monetary policy is universally recognized among economists as fundamental. Historical observations highlight how nations with less autonomy in their central banks face higher inflation rates, sluggish growth, and poorer job markets. It’s critical that we maintain an environment where the Fed can operate independently, as any erosion of this independence could significantly undermine its credibility.
WEIJIA JIANG: Thank you for your insights, Austan, and I wish you a Happy Easter.
AUSTAN GOOLSBEE: Happy Easter to you too, Weijia. Always a pleasure to speak with you.
WEIJIA JIANG: We’ll be right back.
Face The Nation Transcripts
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