Former officials say DOJ probe threatens Fed independence, has 'no place in the United States'

A coterie of former Federal Reserve chairs, Treasury secretaries, and prominent economists spoke out Monday in support of Fed Chair Jerome Powell and expressed alarm over the Justice Department's threat of a criminal prosecution at the central bank.

“The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine [the Fed's] independence,” said the statement signed by former Fed Chairs Janet Yellen, Ben Bernanke, and Alan Greenspan, as well as four past Treasury secretaries who served under both Republican and Democratic presidents.

“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,” it continued. “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.”

Yellen told CNBC on Monday that the investigation compromises the central bank’s independence and said she thinks financial markets should be more concerned about a situation she called “extremely chilling.”

https://finance.yahoo.com/news/former-officials-say-doj-probe-threatens-fed-independence-has-no-place-in-the-united-states-185910966.html