The investigation threatens Federal Reserve independence from executive branch.

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True. The investigation represents an unprecedented threat to Federal Reserve independence from executive branch political pressure. Powell stated the criminal charges threat stems from "the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President." Former Fed chairs Greenspan, Bernanke and Yellen condemned it as "an unprecedented attempt to use prosecutorial attacks to undermine that independence." The Fed's statutory independence exists precisely to insulate monetary policy from short-term political considerations. Using criminal investigation tools to pressure rate decisions undermines this foundational principle, regardless of the stated pretext about building renovations.

The investigation threatens Federal Reserve independence from executive branch.

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