New York [US], January 13: Three former U.S. Federal Reserve chairs and 10 other former top economic officials from the federal government on Monday criticized federal prosecutors' criminal investigation targeting Fed Chair Jerome Powell.
The criminal inquiry into Powell is an unprecedented attempt to use prosecutorial attacks to undermine the Fed's independence, said a joint statement signed by former Fed chairs Ben Bernanke, Alan Greenspan and Janet Yellen.
"The Federal Reserve's independence and the public's perception of that independence are critical for economic performance, including achieving the goals Congress has set for the Federal Reserve of stable prices, maximum employment, and moderate long-term interest rates," the statement said.
The statement warned of "highly negative consequences for inflation" and the functioning of their economies more broadly, and stressed the importance of the rule of law.
Signatories of the statement include former treasury secretaries and former chairs of the Council of Economic Advisers, as well as Kenneth Rogoff, former chief economist of the International Monetary Fund.
On Sunday, Powell said federal prosecutors are investigating him over the Fed's multi-billion-dollar project to renovate its headquarters. "I will continue to do the job the Senate confirmed me to do."
Source: Fijian Broadcasting Corporation
