Powell Breaks Silence: Fed Independence Under Threat Amid DOJ Probe
World
M
Moneycontrol•14-01-2026, 14:42
Powell Breaks Silence: Fed Independence Under Threat Amid DOJ Probe
- •Jerome Powell, Federal Reserve Chair, broke his long-standing silence after receiving subpoenas from the US Justice Department related to a criminal investigation.
- •Powell views the investigation as a direct threat to the Fed's independence, arguing that using criminal charges to influence monetary policy turns interest rates into a political weapon.
- •The Fed's independence is crucial to prevent governments from pushing for easy money, which can lead to inflation and financial instability, a principle supported by economists globally.
- •The timing is significant as Powell's term ends soon, but he believes the risk of setting a precedent for targeting central bank leaders outweighs personal cost.
- •The confrontation has unsettled Washington, with some Republicans expressing discomfort, and markets are closely watching, fearing loss of credibility if the Fed is seen as politically compromised.
Why It Matters: Jerome Powell is fighting to protect the Federal Reserve's independence from political interference.
✦
More like this
Loading more articles...
