Former Fed Chairs and Treasury Leaders Support Jerome Powell Amid Trump DOJ Investigation
Allianz chief economic advisor Mohamed El-Erian joins ‘Mornings with Maria’ to discuss the Department of Justice’s probe into Federal Reserve Chair Jerome Powell and President Donald Trump’s calls for a 10% cap on credit card interest rates.
A group of former Federal Reserve chairs and Treasury secretaries has come together to defend Fed Chair Jerome Powell. This support follows Powell’s revelation that the Trump administration’s Justice Department is threatening to criminally indict him over his testimony regarding the Fed’s renovations.
The coalition includes notable figures such as former Fed Chairs Ben Bernanke, Alan Greenspan, and Janet Yellen, along with former Treasury Secretaries Timothy Geithner and Henry Paulson. Additionally, several former chairs of the Council of Economic Advisers from both Republican and Democratic administrations have joined the statement.
The group emphasized the importance of the Federal Reserve’s independence, stating, “The Federal Reserve’s independence and the public’s perception of that independence are critical for economic performance.” They highlighted that this independence is essential for achieving the goals set by Congress for the Federal Reserve, which include stable prices, maximum employment, and moderate long-term interest rates.
Former Fed chairs and Treasury secretaries are defending Federal Reserve Chairman Jerome Powell after he revealed the Trump Justice Department is pursuing a criminal probe. (Kent Nishimura/Getty Images / Getty Images)
The statement from the former officials further asserted, “The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence.” They expressed concern that such actions resemble tactics used in emerging markets with weak institutions, which can lead to severe negative consequences for inflation and overall economic functioning.
They concluded by emphasizing that such prosecutorial tactics have no place in the United States, a nation whose strength lies in the rule of law, which is fundamental to its economic success.
This is a developing story.
Allianz chief economic advisor Mohamed El-Erian joins ‘Mornings with Maria’ to discuss the Department of Justice’s probe into Federal Reserve Chair Jerome Powell and President Donald Trump’s calls for a 10% cap on credit card interest rates.
A group of former Federal Reserve chairs and Treasury secretaries has come together to defend Fed Chair Jerome Powell. This support follows Powell’s revelation that the Trump administration’s Justice Department is threatening to criminally indict him over his testimony regarding the Fed’s renovations.
The coalition includes notable figures such as former Fed Chairs Ben Bernanke, Alan Greenspan, and Janet Yellen, along with former Treasury Secretaries Timothy Geithner and Henry Paulson. Additionally, several former chairs of the Council of Economic Advisers from both Republican and Democratic administrations have joined the statement.
The group emphasized the importance of the Federal Reserve’s independence, stating, “The Federal Reserve’s independence and the public’s perception of that independence are critical for economic performance.” They highlighted that this independence is essential for achieving the goals set by Congress for the Federal Reserve, which include stable prices, maximum employment, and moderate long-term interest rates.
Former Fed chairs and Treasury secretaries are defending Federal Reserve Chairman Jerome Powell after he revealed the Trump Justice Department is pursuing a criminal probe. (Kent Nishimura/Getty Images / Getty Images)
The statement from the former officials further asserted, “The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence.” They expressed concern that such actions resemble tactics used in emerging markets with weak institutions, which can lead to severe negative consequences for inflation and overall economic functioning.
They concluded by emphasizing that such prosecutorial tactics have no place in the United States, a nation whose strength lies in the rule of law, which is fundamental to its economic success.
This is a developing story.
