Overview
- The Justice Department served grand jury subpoenas on the Federal Reserve tied to Jerome Powell’s Senate testimony about a Washington headquarters renovation reported around $2.5 billion, and no charges have been announced.
- Powell called the move a pretext to sway interest‑rate decisions, while D.C. prosecutor Jeanine Pirro said her office merely issued subpoenas to obtain cost information it claims the Fed ignored.
- Leaders of major central banks including the ECB, Bank of England and Bank of Canada, alongside former Fed chairs Janet Yellen, Ben Bernanke and Alan Greenspan, issued statements backing Powell and warning against eroding central‑bank independence.
- Senators from both parties criticized the probe, with Republican Thom Tillis vowing to block Fed confirmations and reports saying Treasury Secretary Scott Bessent warned the White House about market fallout and nomination hurdles.
- Financial markets reflected the tension as gold hit a record high and the dollar and U.S. equity futures weakened, signaling concern over politicized monetary policy.