Mon, 12 Jan 2026

Mon, 12 Jan 2026 Former Fed chairs condemn criminal investigation into Jerome Powell

Three former heads of the central bank say the probe seeks to undermine the Fed's independence and "has no place" in the US.

* Three former heads of the US central bank (Janet Yellen, Ben Bernanke, and Alan Greenspan) along with 10 other former officials have strongly criticized a criminal investigation into Fed Chair Jerome Powell, calling it an attempt to undermine the Federal Reserve's independence.
* The investigation was launched after Powell gave testimony about renovations to Federal Reserve buildings and the DoJ threatened a criminal indictment.
* Powell believes the investigation is politically motivated, related to Trump's anger over interest rates not being cut quickly enough.
* A group of former officials signed a statement saying the investigation has no place in the US, which values the rule of law.
* The move by the DoJ comes after a year of criticism from Trump, who has described Powell as a "major loser" and "numbskull".
* The probe has sparked concerns among investors and analysts, with some suggesting that it could disrupt the confirmation process for Powell's replacement.
* US stock markets were relatively calm on Monday, but financial stocks did slump.
* Analysts say the market reaction could grow if Trump succeeds in influencing Fed policy.
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