Former heads of the US Federal Reserve have issued a rare and forceful rebuke of the Trump administration’s reported criminal probe into Fed Chair Jerome Powell, warning that the move threatens the independence of the central bank.
In a joint statement released on Monday, former Fed chairs Janet Yellen, Ben Bernanke and Alan Greenspan, along with other senior economic policymakers, said the inquiry represents an “unprecedented attempt” to undermine the Federal Reserve through prosecutorial pressure.
“The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence,” the statement said.
The signatories likened the episode to political interference seen in emerging market economies with “weak institutions”, cautioning that such actions have historically led to higher inflation and impaired economic functioning.
The former officials stressed that the Federal Reserve’s independence — and public confidence in it — is essential for delivering stable prices, maximum employment and moderate long-term interest rates, the core objectives set by the US Congress.
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They added that politicising monetary policy erodes the rule of law, which they described as a cornerstone of the United States’ economic strength. “It has no place in the United States,” the statement said, warning that undermining institutional credibility could have lasting consequences for financial stability and policy effectiveness.
The statement followed a video message from Powell on Sunday, in which he said the Justice Department under President Donald Trump had opened a criminal inquiry into remarks he made to Congress last summer regarding renovation work at the Federal Reserve’s headquarters complex in Washington.
