Overview
- Jerome Powell said on Jan. 11 that he is a target of a Justice Department investigation related to past congressional testimony and that he received a grand jury subpoena, calling it administration “threats and pressure.”
- On Jan. 13, governors from the ECB, Bank of England and other major central banks issued a joint statement voicing full solidarity with Powell and emphasizing that independence underpins price, financial and economic stability.
- The Bank of Japan did not join the statement, and a BOJ spokesperson declined to say whether it was invited and would not comment on other central banks’ responses.
- President Trump said he knew nothing about the probe and reiterated criticism of Powell’s performance.
- Markets tracked the fallout, with Tokyo stocks hitting intraday record highs on Jan. 14, as Prime Minister Sanae Takaichi moved to tell LDP leaders she intends to dissolve the lower house.