Overview
- Federal Reserve Chair Jerome Powell said Friday’s subpoenas threaten a criminal indictment tied to his June Senate testimony on the roughly $2.5 billion headquarters renovation.
- Powell called the action a political pretext linked to pressure for faster rate cuts and said he will remain in his post and continue his duties.
- Multiple outlets report the inquiry focuses on whether Powell misled Congress about the project’s scope and cost, after he previously requested an inspector general review.
- The investigation is reportedly overseen by the U.S. Attorney’s Office in Washington led by Jeanine Pirro, while the Justice Department declined to comment publicly.
- Markets reacted to the news with a weaker U.S. dollar, record highs in gold and softer equity futures, as some senators from both parties urged pausing Fed nominations until the probe is resolved.