Goldman Sachs Chief Economist: Expects Fed to Still Make Decisions Based on Data, Unbiased by Investigation Pressure

Odaily News: Goldman Sachs Chief Economist Jan Hatzius stated on Monday that the threat of criminal prosecution facing the Federal Reserve Chair will heighten market concerns about the central bank's independence, but he expects the Fed will still base its policy decisions on economic data. Hatzius said at the 2026 Goldman Sachs Global Strategy Conference: "Clearly, concerns about potential impacts on the Fed's independence are increasing, and the latest news regarding the criminal investigation into Chairman Powell further intensifies these worries." He added: "I have no doubt that Powell will continue to make decisions based on economic data for the remainder of his term and will not be pressured to lean in any direction—whether it's raising or lowering interest rates, it will follow the data guidance." (Jin10)