DOJ probe "crossing a serious line," says former Fed Vice Chair

On Sunday, Federal Reserve Chair Chair Jerome Powell posted a video address where he disclosed that the Federal Reserve had been subpoenaed by the Department of Justice and threatened with a criminal investigation. The news comes after months of escalating attacks by the president and his administration on the Fed’s independence. And according to Princeton economics professor Alan Blinder, this probe crossed “serious line.”

“This is a serious attack on the Federal Reserve in general, I want to emphasize that. And of course, Powell in particular,” said Alan Blinder, who served as Vice Chair of the Federal Reserve Board of Governors from 1994 to 1996.

“Marketplace” host Kai Ryssdal spoke to Blinder about what this news might mean for the future of the Fed and monetary policy.

To listen to the interview, use the play button above.