Goldman Chief Economist: FOMC Will Stick to Data-Driven Rate Decisions

Goldman Chief Economist: FOMC Will Stick to Data-Driven Rate Decisions

Amid rising concerns over the Federal Reserve's independence following recent reports of an investigation into Chair Jerome Powell, Goldman's Chief Economist Jan Hatzius emphasized that the Federal Open Market Committee (FOMC) will continue to base its rate decisions on economic data and its statutory dual mandate.

Despite the potential for political tensions to influence public perception, Hatzius noted that the FOMC's framework is designed to maintain a focus on macroeconomic indicators rather than short-term developments.

• Fed policy has historically been guided by inflation and employment trends
• FOMC structure insulates decision-making from political pressures
• Investors should focus on economic fundamentals over headlines

His analysis reinforces expectations that the Fed will maintain a steady, data-dependent approach to monetary policy amid ongoing uncertainties.