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 economists and business leaders are reacting as the news hit markets at the start of the trading week. They weighed in on how the DOJ move affects the Fed's independence, a question also raised by Sen. Thom Tillis. On Sunday, the Republican said he would oppose nominees for the Fed.

"If there were any remaining doubt about whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," Tillis said in a statement.

Here's what leaders in economics and business are saying:

Mohamed El-Erian

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.

Reid Hoffman

LinkedIn cofounder Reid Hoffman raised concerns about the Fed's independence.

"Question to all those who said Trump would be better for the economy: is attacking the Fed's independence what you had in mind?" wrote the prominent Democratic donor on X.

Peter Schiff

Peter Schiff, the chief economist at Euro Pacific Asset Management, attributed the gold price surge to fresh record highs on Sunday evening to the investigation into Powell.

"I am not a fan of Powell, but I agree with him on Trump's motivation," Schiff, whose firm managed $1.4 billion last year, wrote on X.

In April, Schiff said Trump's next Fed Chair pick would be a "loyal soldier."