Ex-Fed chairs condemn Trump’s bid to weaken central bank’s independence

Former Federal Reserve chairs Alan Greenspan, Ben Bernanke, and Janet Yellen condemned the Trump administration's actions, specifically a Justice Department criminal investigation into current Fed Chair Jerome Powell. The investigation, triggered by Powell's testimony regarding renovations to Fed buildings, is seen as an attack on the central bank's independence. Powell claims he's being targeted for setting interest rates based on public interest, not presidential preference. This move has sparked criticism from both Republicans and former Fed officials, who warn that it could damage the US economy and undermine the rule of law. Thirteen former senior officials signed a statement expressing concern that this unprecedented attempt to use prosecutorial attacks to undermine the Fed's independence could have negative consequences for inflation and the functioning of the economy.

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