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Justice Department Subpoenas Fed, Threatens Powell With Indictment

The inquiry focuses on his June Senate testimony about Fed renovation costs, drawing bipartisan warnings about central-bank independence.

Overview

  • Jerome Powell calls the threatened charges a political intimidation attempt and says he will continue to serve.
  • Grand jury subpoenas were delivered to the Federal Reserve on Friday over alleged false statements about a roughly $2.5 billion headquarters renovation during June testimony.
  • Reporting indicates D.C. prosecutors are handling the case, with some accounts linking approval to Jeanine Pirro, while the Justice Department declined substantive comment.
  • Republican Thom Tillis and Democrat Elizabeth Warren condemn the move, with Tillis vowing to block Fed confirmations until the investigation is resolved.
  • Financial markets reacted as gold hit a record, the dollar weakened and U.S. equity futures fell, complicating pending Fed leadership decisions before Powell’s term ends in May.