Overview
- The Department of Justice has issued subpoenas and opened an investigation related to Powell’s June testimony about cost overruns on the Fed’s Washington headquarters project, which Powell denounced as political pressure.
- Nine central bank chiefs, joined by senior Bank for International Settlements officials, declared “total solidarity” with Powell and called central‑bank independence a pillar of price and financial stability.
- President Donald Trump renewed public attacks, called Powell derogatory names, and said he “will be out soon,” as news reports indicated he is expected to move on a successor before the chair’s term ends in May.
- Former Fed chairs including Alan Greenspan, Ben Bernanke and Janet Yellen condemned the probe as an unprecedented bid to undermine the central bank’s independence.
- JPMorgan CEO Jamie Dimon warned that political interference at the Fed would likely push up inflation and long‑term interest rates, increasing borrowing costs despite calls for rapid rate cuts.