Overview
- The Fed says grand jury subpoenas were served Friday tied to Jerome Powell’s June Senate testimony on a roughly $2.5 billion headquarters renovation, with a criminal indictment threatened.
- Powell called the focus on his testimony and the project “pretexts” to force rate cuts and vowed to remain in his role.
- The inquiry is being handled by the U.S. Attorney’s Office in Washington, led by Jeanine Pirro, according to the New York Times, while the Justice Department declined specifics and cited a priority on taxpayer‑abuse cases.
- President Trump denied knowledge of the investigation and rejected the idea that it is intended to influence rate policy.
- Concerns over central bank independence mounted, with Republican Sen. Thom Tillis pledging to block Fed nominees until the case is resolved and investors showing initial risk‑off moves.