Yellen describes the Powell investigation as ‘deeply unsettling’ for the Fed’s autonomy, warning that the market ought to be worried

Yellen Criticizes Probe Into Powell, Warns of Threat to Fed Independence

On Monday, Janet Yellen, the former Federal Reserve Chair, strongly criticized an ongoing investigation targeting her successor, Jerome Powell. Yellen argued that such scrutiny undermines the Federal Reserve’s autonomy. Having later served as Treasury Secretary, she expressed concern that financial markets are not reacting strongly enough to what she described as a “deeply unsettling” situation.

“I’m surprised by the market’s lack of concern. In my view, there is real cause for worry,” Yellen remarked in comments reported by CNBC’s Sara Eisen. Her statements followed Powell’s acknowledgment that he had been notified of the investigation by the U.S. Attorney’s Office.