DOJ criminal probe highlights risk of Fed losing independence – a central bank scholar explains what’s at stake

The investigation follows Fed Chair Jerome Powell’s refusal to toe the White House’s line over interest rate cuts.

By: Cristina Bodea, Michigan State University, The Conversation

Outlets: The Conversation

Published: January 13, 2026

Words: 957

Last Updated: 2 months, 1 week ago

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By Cristina Bodea, Michigan State University

The Department of Justice’s decision to open a criminal investigation into Federal Reserve chair Jerome Powell has reignited concern over the independence of the central bank.

In unusually blunt remarks, Powell described the unprecedented probe as part of a political attack by the White House over the Fed’s refusal to drastically cut interest rates, as President Donald Trump has long advocated.

But how unique are such apparent …

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