Leadership Now Condemns Politicization of Criminal Law in Powell Probe
Organization urges Congress to defend Fed independence amid investigation of central bank chair.
Leadership Now stands firmly behind Federal Reserve Chair Jerome Powell and the principle of an independent central bank.
The launch of a criminal probe focused on Chairman Powell amid disagreement over interest-rate policy risks the vital independence of the Federal Reserve. In a powerful statement, Powell has said the scrutiny stems from the Federal Reserve setting interest rates based on its best assessment of what serves the public interest, rather than following the preferences of the President.
Congress created the Federal Reserve as an independent entity to insulate monetary policy from political pressure. This enables its decisions to be guided by data, expertise, and considerations of long-term economic stability rather than short-term politics. The use of a pretext to initiate legal action to pressure economic stewards poses a serious threat to governance and the rule of law.
Public officials are not above scrutiny. But the application of criminal law to achieve political ends threatens to politicize both the administration of justice and the setting of monetary policy in the national interest. It sends a chilling message to current and future government officials that their role is not to serve the American people but rather to further specific political ends. Protecting the Fed’s independence is essential to preserving the stability of the U.S. economy and the credibility of the United States’ global financial leadership. We urge Members of Congress to use their full authority to uphold the independence of the Fed.
See Chair Powell’s Jan. 11 statement on the Fed’s independence and decision-making process: https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm