Ex-Fed chairs and economic leaders condemn DOJ investigation of Jerome Powell
WASHINGTON, DC: Every living former chair of the Federal Reserve has signed a rare joint statement condemning Justice Department subpoenas tied to the central bank, calling them an “unprecedented attempt” to undermine the Fed’s independence.
The statement comes after the Justice Department’s investigation into Federal Reserve Chair Jerome Powell.
“This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly,” the statement said.
“It has no place in the United States, whose greatest strength is the rule of law, which is at the foundation of our economic success,” it read.
The signatories stressed that both the reality and the public perception of the Fed’s independence are essential to economic stability and performance.
Heavyweight signatories span parties
The statement was signed by 13 former top economic officials who served under both Democratic and Republican administrations.
Among them are former Fed Chairs Ben Bernanke and Alan Greenspan, former Treasury Secretary Harry M Paulson, and former Treasury Secretary Janet Yellen.
The group also included former Treasury secretaries and former chairs of the Council of Economic Advisers, underscoring the breadth of concern across party lines and institutions traditionally protective of the Fed’s autonomy.
GOP Senators break with administration
At least two Republican senators have publicly criticized the Justice Department’s investigation into Powell.
Sen Kevin Cramer of North Dakota said that he disagreed with Powell’s leadership but rejected the notion of criminal wrongdoing. “I do not believe, however, he is a criminal,” Cramer said, adding that he hoped the investigation ends quickly so confidence in the Fed could be restored.
Sen Thom Tillis of North Carolina went further, accusing advisers within the Trump administration of actively trying to end the Fed’s independence. In a post on X, Tillis said that he would oppose confirming any Federal Reserve nominees until the legal matter was “fully resolved.”
Both senators serve on the Senate Banking Committee, which needs to approve presidential nominees to the Federal Reserve before they advance to the full Senate.
Trump denies role as backlash grows
President Donald Trump denied any involvement in the Justice Department probe after news of the criminal inquiry into Powell became public Sunday.
The investigation has triggered sharp criticism from Democrats and a notable slice of Republicans, many of whom framed the move as a direct assault on the Federal Reserve’s independence, a principle long viewed as central to the credibility of US monetary policy.
Democrats reacted furiously to news that the Trump administration had opened a criminal inquiry into the Federal Reserve Chair
“Jay Powell and the Fed aren’t the reason Trump’s economy and his poll numbers are in the toilet. If he’s looking for the person who caused that he should look in the mirror,” Senate Minority Leader Chuck Schumer said in a statement posted to X.
