Overview
- The Justice Department issued grand-jury subpoenas tied to Jerome Powell’s June testimony on Fed headquarters renovations, a step that could precede criminal charges.
- In a rare video statement, Powell called the move unprecedented and vowed to continue his duties, arguing the case targets the Fed for not delivering lower interest rates.
- President Donald Trump told NBC he knew nothing of the probe, even as he has repeatedly urged rate cuts and publicly disparaged Powell.
- Republican senators Thom Tillis and Lisa Murkowski signaled they would block Federal Reserve nominations until the legal issue is resolved, with Powell’s chair term ending in May.
- Former Fed chairs and leaders from 11 major central banks issued statements defending Fed independence, while markets saw brief volatility before stabilizing.