Overview
- The Federal Reserve said it received grand jury subpoenas last week tied to Chair Jerome Powell’s June testimony on a $2.5 billion, self‑financed headquarters renovation, with prosecutors scrutinizing alleged omissions about amenities.
- Powell rejected the investigation in a rare video statement as political pressure on monetary policy and pledged to continue performing his duties despite the threat of criminal charges.
- U.S. Attorney for D.C. Jeanine Pirro defended using subpoenas after what she called ignored outreach about cost overruns and Powell’s testimony, and reporting indicates she intends to press the inquiry.
- Opposition broadened as former Fed chairs and Treasury secretaries, eleven central bank chiefs overseas, and Wall Street leaders warned the probe risks politicizing rate decisions, while Senators Thom Tillis and Lisa Murkowski vowed to block Fed nominees until the matter is resolved.
- President Trump escalated his criticism of Powell, dismissed Jamie Dimon’s warning as wrong, and said he will soon name a replacement, even as markets showed a muted initial reaction with major stock indexes finishing higher.