Former Federal Reserve Chair Janet Yellen has criticized an investigation into current Fed Chair Jerome Powell, arguing it threatens the central bank's independence.
Yellen, who served as Treasury Secretary after her tenure at the Fed, voiced her concerns, stating that financial markets should be more worried about the situation, which she described as 'extremely chilling.'
'I'm surprised the market isn't more concerned. It seems to me that the market should be concerned,' Yellen remarked, as reported by CNBC's Sara Eisen.
Her comments follow Powell's confirmation that the U.S. attorney's office in Washington, D.C., is investigating whether he committed perjury during congressional testimony last June concerning a costly renovation project at the Fed's headquarters. The investigation is led by Jeanine Pirro, a Trump associate and former Fox News host.
The Justice Department has yet to officially acknowledge the investigation into potential perjury charges.
Yellen dismissed the possibility that Powell could have lied. 'Knowing Powell as well as I do, the odds that he would have lied are zero, so I do believe they’re going after him because they want his seat and want him gone,' she commented.