Overview
- Powell disclosed that federal prosecutors delivered grand‑jury subpoenas to the Federal Reserve on Jan. 9 tied to his June Senate testimony.
- The inquiry focuses on a multiyear renovation of Fed buildings estimated around $2.5 billion, with critics citing figures up to about $3.1 billion that Powell disputed.
- The Justice Department declined to discuss specifics, and spokesperson Chad Gilmartin said prosecutors will prioritize investigating any abuse of taxpayer funds.
- Markets turned volatile after the disclosure, with U.S. equity futures falling and haven assets gaining as investors weighed risks to policy credibility.
- Trump told NBC he was unaware of the probe, while reporting says D.C. prosecutors are examining whether Powell misled Congress, and the investigation advances as his term ends in May with the White House preparing a possible successor.