Former Fed Chairs Condemn DOJ Probe Targeting Powell Amid Rate-Cut Dispute
Thirteen prominent economists, including former Federal Reserve chairs, have publicly denounced a Justice Department investigation into current Fed Chair Jerome Powell. The probe follows months of tension between Powell and President Donald TRUMP over interest rate policy.
The Fed has implemented three consecutive rate cuts, lowering borrowing costs to 3.5%-3.75% - the lowest level in three years. Trump has demanded more aggressive action, calling for 1% rates and publicly berating Powell. The unprecedented criminal investigation raises concerns about central bank independence.
"The independence of the Fed and how the public sees that independence are critical for economic performance," the economists wrote in their letter. Market participants are watching closely as the standoff could impact financial stability and investor confidence.
