Overview
- Powell says subpoenas delivered Friday by the D.C. U.S. Attorney target his June Senate testimony on the Fed’s $2.5 billion headquarters renovation.
- The Justice Department declined to discuss specifics, citing an attorney general directive to pursue alleged taxpayer abuse, and reporting links the probe’s approval to U.S. Attorney Jeanine Pirro.
- Trump told NBC News he had no knowledge of the action and rejected that it was intended to force rate cuts.
- Lawmakers from both parties, including Sen. Thom Tillis and Sen. Elizabeth Warren, vowed to oppose any Trump nominees to the Federal Reserve until the matter is resolved.
- Markets showed caution, with the dollar weakening, gold rising to a record, and U.S. equities slipping in early trading.