Several global economic leaders have expressed alarm about the Department of Justice (DOJ) investigation into Fed Chair Jerome Powell. On Thursday, Federal Reserve Governor Michael Barr added his voice to the growing list and warned that the independence of the central bank is at stake.
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“I think these are just examples of the ways in which the independence of the Fed is being challenged,” Barr said in an interview with Yahoo Finance.
Barr Reaffirms Fed’s Focus on Inflation and Jobs
Barr emphasized that the Fed’s interest rate decisions are based solely on its dual mandate of price stability and maximizing employment, keeping politics out of the process.
Earlier this week, Powell disclosed that the DOJ had launched an investigation into his oversight of the Fed’s $2.5 billion renovation of its Washington, D.C., headquarters. He claimed the probe served as a pretext for the Fed setting policy independently instead of adhering to President Trump’s demands for lower rates.
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