Former Fed chiefs, US lawmakers defend Powell in clash with Trump
發佈日期: 2026-01-13 21:19
TVB News
In a major escalation by the Trump administration purportedly to exert greater control over the Federal Reserve, its chairman Jerome Powell has been threatened with a criminal indictment over his testimony regarding the central bank's 2.5 billion US dollar renovation.
The spat has heightened market concerns over the Fed's independence and drew condemnation from the agency's former chiefs and key lawmakers.
Jerome Powell has rejected the "unprecedented action" from the Department of Justice, and defended the headquarters' renovation project as transparent.
He said the threat of criminal charges is a "consequence" of the Fed setting interest rates based on their "best assessment of what will serve the public," rather than following the preferences of the president.
On Monday, a bipartisan group of former heads of the US central bank strongly condemned the administration's action to use prosecutorial attacks to undermine the Fed's independence.
Janet Yellen, Ben Bernanke and Alan Greenspan, along with other top economists rallied behind Powell, stressing that central banks in the hands of political leaders tend to produce higher inflation and lower growth.
The former officials wrote in a statement, "It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success."
Massachusetts senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, condemned President Donald Trump's latest attempt to weaponise the DOJ "in plain view" so the independent body serves his interests.
Warren said what the president is trying to do is not only detrimental for the US economy but also undermines America all around the world.
This as Democrats say this investigation is ultimately aimed at helping the GOP gain its footing in the midterm elections.
Meanwhile, US Senate majority leader John Thune warned the DOJ's criminal investigation of Powell better be "real" and "serious" as he called for a speedy resolution to avoid roiling the financial markets.
Thune indicated the controversy could make it more challenging for the Senate to confirm Trump's nominees for the Fed.
A growing list of Republicans showed resistance to the probe. Senator Thom Tillis from North Carolina has vowed to block any Trump appointees to the central bank in light of revelations that Powell is facing potential perjury charges.
Powell's term as Fed chief will end in May yet he can stay in the agency's Board of Governors until 2028.
White House press secretary Karoline Leavitt on Monday denied Trump ordered the DOJ to launch an investigation into Powell, adding it's the president's right to criticise the chair.
She said: "Look, the president has every right to criticise the Fed chair. He has a First Amendment right, just like all of you do. And one thing for sure, the president's made it quite clear, is Jerome Powell is bad at his job. As for whether or not Jerome Powell is a criminal, that's an answer the Department of Justice is going to have to find out. And it looks like they intend to find that out."
