Fed's Goolsbee: So far, consumer just keeps chugging along

Thank you for inviting me to speak today. I am going to use my time to reflect on central bank independence and to point to where I believe the concept is incomplete and hence more challenged. I will use the term CBI hereon. Modern CBI emerged out of the high inflation era of the 1970s. This does not mean that the concept originated then, it has a much longer history. But in its modern form the 1970s was the experience that prompted change. I will use the Bank of England as a brief case study to illustrate the antecedents to the change. The first stop is 1802, when Henry Thornton wrote “An Enquiry into the Nature and Effects of the Paper Credit of Great Britain” BoE Gov. Bailey: financial stability policy risks becoming pro-cyclical. BOE GOV. BAILEY: FINANCIAL STABILITY IS MORE EXPOSED TO POLITICAL AND PRIVATE PRESSURE. ... BAILEY SAYS CENTRAL BANK INDEPENDENCE FOR FINANCIAL STABILITY IS 'NOT ROBUST ENOUGH BANK OF ENGLAND GOVERNOR ANDREW BAILEY DOES NOT ADDRESS CURRENT MONETARY POLICY IN PREPARED REMARKS TO COLOMBIA UNIVERSITY EVENT #bankofengland #boe #monetarypolicy #interestrates #andrewbailey #inflation #energypriceshock #ukeconomy

It is great to be here with you today. During my career, I've had the opportunity to work on issues affecting rural communities, especially access to capital. My time at the Federal Reserve has only deepened my appreciation for the opportunities and challenges of rural America, as I've traveled over the past several years to rural communities. These communities share many challenges, and they also face distinct obstacles that require flexible solutions. What has stood out to me is the level of innovation and creativity behind many of those solutions. We should do more to elevate these examples, sharing what works and spreading ideas that can expand opportunity and support economic growth across rural America. For example, in 2023, I had the opportunity to travel the Blues Trail in the Mississippi Delta, from Jackson to Memphis. Along the way, I met with local leaders and financial institutions, some of whom are represented here today, to learn how once-thriving rural railroad towns are adapting to both long-standing and emerging challenges. Just in | Fed's Barr refrains from addressing US economic outlook and monetary policy in prepared statements.