Former Fed Chiefs Defend Powell

Benzinga

Former U.S. officials warned that the Trump administration’s criminal probe into Jerome Powell threatens Federal Reserve independence, unsettling markets despite a muted reaction.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02The Trump administration's criminal investigation into Jerome Powell unsettled markets Monday

00:07and drew public criticism from former U.S. officials, according to The Wall Street Journal.

00:13Former officials from both parties, including Alan Greenspan, Ben Bernanke, and Janet Yellen,

00:19defended Jerome Powell and said the investigation threatens the Federal Reserve's independence

00:23by using prosecutorial pressure to influence monetary policy.

00:27Economists and investors view an independent Federal Reserve as key to controlling inflation

00:32and market stability.

00:34Powell said the investigation lacks merit and is intended to pressure the Federal Reserve

00:38into following the administration's demands.

00:41The muted market reaction on Monday suggested investors remain concerned and believe Trump

00:45is unlikely to succeed in directing Federal Reserve policy.

00:49Trump said he was unaware of the subpoenas and denied political motives.

00:54For all things money, visit Benzinga.com.

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