Juana Summers

The Federal Reserve decides monetary policy across the United States.

Its decisions help shape the global economy.

What happens if that independence is threatened?

From NPR, I'm Juana Summers.

It's Consider This from NPR.

Adam Pozen is president of the Peterson Institute for International Economics.

He studied central bank independence for a very long time.

He says governments should treat monetary policymakers like surgeons or airline pilots.

The patient or passenger must let them work and evaluate their performance based on the results.

I asked him for his first reaction to the news of the Department of Justice's investigation.

I'll note that President Trump has said that he had no knowledge of the investigation.

But to your mind, do these DOJ subpoenas endanger the independence of the Federal Reserve?

Now, we know that it has long been the practice of the Fed to avoid overt fights with the president or Congress.

But watching Jerome Powell's statement after receiving that subpoena, that is just a remarkably different tack.

Why do you think such a change?

And Powell only has months left in his term as Fed chair.

President Trump will get to nominate his own replacement.

And we've already seen at least one Republican on the Senate Banking Committee, Tom Tillis of North Carolina, say that he would vote to block Trump's nominee unless the DOJ investigation is resolved.

Adam, what would a prolonged fight over Powell's replacement mean for the Federal Reserve day in and day out?

Big picture, as you take stock of the future of the Federal Reserve at this moment in time, does it look any different to you right now?