STATEMENT: Jared Bernstein and Neera Tanden on the Politicized Criminal Investigations of Fed Chair Jerome Powell

Washington, D.C. — Following reports that federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell, the Center for American Progress issued the following statements:

“The uncertainty, chaos, and threat to independence created by the Trump administration’s repeated attacks on the Federal Reserve are deeply harmful to financial markets, the broader economy, and the living standards of American families,” said Jared Bernstein, senior fellow at the Center for American Progress and former chair of the Council of Economic Advisers. “History is littered with examples of how politicizing monetary policy injects risk, volatility, and spiking inflation into economies that have followed this path.”

“The president’s hostility to the independence of the Federal Reserve—and his willingness to weaponize the justice system against anyone who doesn’t do his bidding—are well documented,” said Neera Tanden, president and CEO of the Center for American Progress. “As Chair Powell said, this brazen witch hunt is a pretext and a threat to the rule of law, America’s role as a global economic leader, and the stability of our economic system—which benefits every American. Using political intimidation to undermine an independent central bank is what authoritarian leaders do. Senators have a responsibility to defend the Fed’s independence and the credibility of the justice system, and they should withhold consent for any Federal Reserve nominee until the inquiry is ended.”