Overview
- Jerome Powell released a brief video stressing that the Federal Reserve must set interest rates based on evidence and economic conditions, marking his first direct defense of the institution’s independence.
- The Justice Department issued subpoenas and threatened a criminal investigation focused on Powell’s congressional testimony and the Fed’s headquarters renovation, whose projected cost has risen from about $1.9 billion to $2.5 billion.
- Markets wobbled as stocks dipped temporarily, interest rates rose, the dollar weakened and gold climbed, reflecting concerns about pressure on the central bank.
- Republican Senator Thom Tillis said he will block any Trump nominee to the Fed, citing the DOJ’s probe into potential perjury by Powell.
- Former Fed chairs Janet Yellen, Ben Bernanke and Alan Greenspan, along with international central‑bank leaders including Christine Lagarde and Andrew Bailey, publicly backed Fed independence in a letter supporting Powell.