Bloomberg Talks Nobel Laureate & CUNY Economics Professor Paul Krugman Talks Powell Investigation
Mar 13, 2026
Paul Krugman, Nobel laureate and CUNY economics professor known for work on international economics and policy commentary, reacts to a judge blocking a probe of Fed Chair Powell. He calls the subpoenas harassment and warns Fed independence is at stake. He weighs whether the administration will keep pushing and how replacements might affect policy.
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Subpoenas Read As Political Pressure On Powell
- The subpoenas appear aimed at harassing Fed Chair Jerome Powell to pressure rate cuts rather than investigating real crimes.
- Paul Krugman cites the judge's ruling calling the subpoenas a pretext and points to Trump's public pressure on rates as motive.
Unprecedented Targeting Threatens Fed Norms
- This level of direct targeting of the Fed chair by the administration is unprecedented compared with past administrations' deference to Fed independence.
- Krugman stresses prior presidents rarely criticized Fed decisions, much less pursued subpoenas on unrelated matters.
Weak Case Won't Stop Political Retaliation
- Even if the legal case is weak, the administration may continue investigations out of vindictiveness, prolonging pressure on Fed officials.
- Krugman notes Powell has personal resources to fight back, whereas other officials like Lisa Cook had to scramble for defenses.