Former Fed Chair Officials Unite to Defend Powell Amid Political Pressure

A coalition of former U.S. monetary and fiscal leaders issued a rare joint statement on January 12, 2026, affirming their support for Federal Reserve Chair Jerome Powell. The group included former Fed chairs Alan Greenspan, Ben Bernanke, and Janet Yellen, as well as former Treasury Secretaries and prominent economists, collectively citing concerns over what they described as increasingly aggressive political scrutiny of the Fed’s actions. The statement highlighted that since January 2025, the Federal Reserve has maintained a benchmark interest rate of 5.5%—a level aimed at curbing inflation while avoiding financial market disruption. Despite inflation cooling to 3.1% in the fourth quarter of 2025, down from a peak of 9.1% in mid-2023, the coalition warned that politicizing monetary policy could erode confidence in the central bank’s ability to act independently. The group pointed to a 67% increase in public statements from the White House in 2025 targeting Fed decisions, compared to the previous administration’s average. They also cited a 22% rise in congressional hearings on Fed policy, many of which focused on rate decisions rather than broader economic indicators. These developments, they argued, create a precedent that could deter future Fed leadership from making data-driven decisions. Market participants reacted with caution. The S&P 500 dropped 1.8% within two trading days following the statement, while 10-year Treasury yields rose to 4.38%, reflecting heightened concerns about policy uncertainty. Financial institutions, including JPMorgan Chase, Bank of America, and Goldman Sachs, issued internal briefings warning clients of potential volatility if political interference escalates further.