Janet Yellen says Powell probe ‘extremely chilling’ for Fed independence, market should be concerned

Summary

Sara Eisen reports on her interview with former Fed Chair and Treasury Secretary Janet Yellen about the DOJ criminal investigation into Jerome Powell. Yellen calls the probe extremely chilling for Fed independence and says the market should be more concerned, warning that political pressure to cut rates for debt-service reasons risks fiscal dominance and hyperinflation. The segment notes market reaction has included a gold bid and a softer dollar, and discusses Powell's possible future at the Fed, prediction-market odds, and Senator Tillis's opposition to further nominations.

• Sara Eisen interviews former Fed Chair Janet Yellen about the DOJ probe of Powell.
• Yellen says the investigation is extremely chilling for Fed independence and politically motivated.
• She warns markets are too complacent and should be more concerned.
• Yellen criticizes political pressure on the Fed to cut rates for lower debt payments.
• She cites Argentina, Turkey and Venezuela as cautionary examples of debt monetization and hyperinflation.
• Market reaction noted: gold bid and weaker dollar.
• Discussion includes Powell's potential exit or stay, prediction-market odds, Evercore notes, and Senator Tillis's stance.