Overview
- Jerome Powell disclosed that the Justice Department served grand jury subpoenas tied to his June Senate testimony about Federal Reserve building renovations, calling the action a political pretext.
- U.S. stock futures fell, the dollar weakened and gold surged to record highs as investors moved into safe havens, with silver also jumping sharply.
- Treasury yields edged higher and fed funds futures priced in a small increase in expected rate cuts, reflecting reassessment of policy risks.
- Republican Senator Thom Tillis said he would block any White House Federal Reserve nominees until the legal matter is resolved, while President Trump said he was unaware of the investigation.
- Powell’s term ends in May, raising stakes for Fed leadership and policy direction as concerns over central‑bank independence intensify.