Greenspan, Bernanke, Yellen and other past officials say Trump using ‘prosecutorial attacks’ to undermine Fed

Former Federal Reserve presidents, Treasury secretaries and a chorus of leading economists joined forces Monday to support Jerome Powell, noting that the central bank leader faces possible perjury allegations from the Justice Department.

“The reported criminal investigation into Federal Reserve Chairman Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence.” a statement He said it was supported by more than a dozen signatories.

“This is how monetary policy is implemented in emerging markets with weak institutions and has extremely negative consequences for inflation and the functioning of economies more broadly,” the statement said. “This has no place in the United States, whose greatest strength is the rule of law that underpins our economic success.”

Among those who signed the declaration were former Fed Chairs Ben Bernanke, Janet Yellen and Alan Greenspan, as well as former Treasury Secretaries Henry Paulson, Timothy Geithner, Robert Rubin and Jacob Lew. Economists such as Glenn Hubbard, Kenneth Rogoff and Jared Bernstein also signed on.

Powell confirmed Sunday that he had been notified by the U.S. attorney’s office in Washington, D.C., that he was the subject of an investigation regarding comments he made to Congress last June. During his testimony on Capitol Hill, Powell answered questions about a major renovation project at the central bank’s headquarters in the nation’s capital.

At the time, President Donald Trump and other officials used the cost overruns to intensify their criticism of Powell. Trump threatened to fire the Fed chairman but backed down. It is unclear whether the president will have the authority to fire Powell, as an unrelated lawsuit against Fed Governor Lisa Cook is set for a hearing at the U.S. Supreme Court next week that also addresses the president’s authority over the central bank.

“The independence of the Federal Reserve and the public’s perception of that independence are critical to economic performance, including achieving the goals of stable prices, maximum employment, and moderate long-term interest rates that Congress established for the Federal Reserve,” the statement said. The statement was included.

Former assistant U.S. attorney Jonathan Kantner told CNBC on Monday that the bar for convicting someone in cases like this is “very high,” especially when there is a perception that the investigation is politically motivated.

Trump has long criticized Powell for pushing the Fed to lower interest rates. The central bank approved three reductions in 2025.

In a statement Sunday, Powell claimed the accusations were a pretext to remove him from office. If that happens, Kantner said, it “will set in motion a whole bunch of other legal disputes.” “This can be quite complicated.”

CNBC has reached out to the White House and Department of Justice for comment.

Correction: Jonathan Kantner is a former assistant US attorney general. His name was misspelled in an earlier version.