Overview
- The Federal Reserve says the DOJ served grand jury subpoenas Friday tied to Jerome Powell’s June testimony on a $2.5 billion headquarters renovation with roughly $700 million in overruns, overseen by the U.S. Attorney’s Office in Washington, D.C.
- Powell publicly called the threatened indictment a political pretext to force deeper interest‑rate cuts and vowed to defend the Fed’s decision‑making from pressure.
- Republican Sen. Thom Tillis and Alaska’s Lisa Murkowski pledged to block any Trump nominees to the Federal Reserve until the matter is resolved, clouding plans to fill the chair role when Powell’s term ends in May.
- A group of former Fed chairs and senior economic officials issued a statement calling the investigation an unprecedented attempt to undermine central‑bank independence.
- President Trump denied ordering or knowing of the probe, while reporting says the inquiry began in November and was approved by D.C. U.S. Attorney Jeanine Pirro.