Here's what smart people in economics and business are saying about the DOJ's Fed probe

"Fed Chair Jerome Powell said the central bank has received grand jury subpoenas from the Justice Department. Economists, business leaders, and analysts are weighing the implications of the development. Economists warn the probe threatens central bank independence and could rattle markets. Federal Reserve Chair Jerome Powell said late Sunday that the central bank had received grand jury subpoenas from the Department of Justice. He described the move as a part of a broader effort to pressure the central bank on monetary policy."

"Prominent economist Mohamed El-Erian called for Powell's resignation months ago to protect the Fed's independence amid the feud with Trump. On Sunday, El-Erian wrote on X that the inquiry into Powell is damaging for the US central bank. "For those of us who value the operational autonomy of central banks, the risk is that this situation could expose deeper issues - further undermining the credibility of a Fed whose public standing is already fragile," wrote El-Erian, who is a former co-chief investment officer at Pimco."

Federal Reserve Chair Jerome Powell announced that the central bank received grand jury subpoenas from the Department of Justice and described the subpoenas as part of a broader effort to pressure the Fed on monetary policy. Prominent economists, business leaders, and analysts reacted, expressing concern that the inquiry could undermine the Fed's operational autonomy and credibility. Senator Thom Tillis said he would oppose Fed nominees and framed the subpoenas as evidence of efforts to end Fed independence. Mohamed El-Erian warned the inquiry damages the central bank's standing, and Reid Hoffman criticized attacks on the Fed's independence. Market volatility increased as the news broke.

Read at Business Insider