Former Fed Chiefs: Trump DOJ Probe "Unprecedented," Risks Global Trust

In a rare joint statement, all four living former Federal Reserve chairs have condemned a Justice Department investigation into current Fed Chair Jerome Powell. They warn the probe sets a dangerous precedent for political interference. The investigation, launched under the Trump administration, examines Powell's financial transactions. The former chairs—Ben Bernanke, Janet Yellen, Alan Greenspan, and Paul Volcker—state such an inquiry into a sitting chair's personal finances is without precedent. Their statement argues that applying political pressure on the central bank undermines its critical independence. This independence allows the Fed to make long-term economic decisions without short-term political influence. The former leaders implied the action damages the United States' financial reputation. They cautioned that manipulating central bank leadership is a tactic more typical of unstable economies, not a global financial leader. The Justice Department has not commented. The strong rebuke from the nation's most experienced monetary policymakers highlights deep concern over the probe's implications for the institution's future credibility.