What's at stake in Trump's war on Powell

""This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly," said a joint statement issued Monday morning signed by every living former Fed chair and numerous other former high officials. "It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success," they wrote."

""Powell, in a stunning - and very un-Fed-like - video statement issued Sunday night, made no bones about it. This, he said, isn't about legitimate oversight of the Fed's building project, but about punishing him for not delivering the interest rate cuts Trump seeks.""

""A key defender of central bank independence, Sen. Thom Tillis (R.-N.C.), said that "it is now the independence and credibility of the Department of Justice that are in question" and that he will oppose confirmation of any Fed nominee, including for the chairmanship, until the matter is "fully resolved." It all comes as the Supreme Court prepares to hear a case about whether Trump can fire another Fed governor, Lisa Cook, over dubious accusations involving her home mortgage applications.""

Powell's Federal Reserve chair term ends in May amid unprecedented threats from the administration to use criminal charges and DOJ leverage against him. Former Fed chairs and senior officials warned that such actions mirror emerging-market tactics that undermine monetary policy, inflation control, and economic functioning. Lawmakers including Sen. Thom Tillis expressed concern about DOJ credibility and pledged to block Fed confirmations until the matter is resolved. Markets have largely treated the conflict as political noise so far, but the willingness to weaponize government institutions could erode central bank independence and complicate monetary policy for Powell's successor.

Read at Axios