Overview
- Jerome Powell confirmed the Fed received grand jury subpoenas Friday tied to his June Senate testimony on costly headquarters renovations and said the legal move is a pretext to pressure rate cuts.
- The dollar weakened roughly 0.3% as the euro and Swiss franc rose, while gold set a record near $4,600 an ounce and silver rallied on safe‑haven demand.
- U.S. stock futures fell, led by the Nasdaq‑100, and fed‑funds futures added only a few basis points of additional cuts priced for 2026.
- The escalation deepens the long‑running confrontation between President Donald Trump and the central bank and raises broader concerns about monetary‑policy independence.
- Trump said he did not know about the investigation and denied any intent to sway rate decisions, while investors look to CPI data and the late‑January Fed meeting as Powell’s term nears its May end.