Overview
- Powell disclosed that grand jury subpoenas were delivered to the Federal Reserve on Friday, saying he was warned of possible criminal charges tied to his Senate testimony.
- The Justice Department declined to discuss specifics and cited Attorney General Pam Bondi’s directive to prioritize probes of suspected abuse of taxpayer funds.
- Financial markets reacted after the disclosure, with gold hitting a record high, the dollar weakening, U.S. stock futures slipping and longer-term Treasury yields edging higher.
- President Donald Trump said he had no knowledge of the probe, while prominent critics and supporters of the Fed warned the move jeopardizes central-bank independence.
- Former Fed chairs, along with several senators including Republicans, criticized the step as unprecedented and some vowed to block Fed nominations until the matter is resolved.